While our last blog gave you some great stats about the Pittsburgh Year End Real Estate Update For 2015, it’s time to look forward and see what both the national and Pittsburgh Real Estate Predictions are for 2016. First, let’s look at what is predicted for the 2016 National Real Estate Market.
2016 National Real Estate Predictions:
Our trusted source said that while 2015 was one of the best real estate markets since 2007, 2016 is expected to be even better. One of the greatest stats you may ever see about the national 2016 real estate market from a different source predicts that
“Total sales for existing and new homes will reach 6 million for the first time since 2006, a result of a strong gross domestic product increase of 2.5 percent and continued job creation”
While this is extremely good news for the national real estate market, here are some other notable predictions:
- New construction to see increases – new homes are predicted to grow 12% year over year and new home sales predicted to grow 16% year over year!
- Millennials (ages 25-34) are expected to be the largest group of buyers in 2016! (They represented 30% of home sales last year.)
- Generation X (ages 35-44) is to be the 2nd largest group of buyers in 2016, after representing approximately 20% of home sales in 2015.
- Prospective Retirees (both singles and couples ages 65-74) will be the 3rd larges group in 2016, having been 14% of homebuyers in 2015. They will likely be putting current homes up for sale in an effort to downsize.
So how does the 2016 Pittsburgh Real Estate Predictions compare?
2016 Pittsburgh Real Estate Predictions
Since the Pittsburgh Business Times and the West Penn Multilist saw these numbers increases in 2015, they are predicting that the following stats will continue to increase in 2016:
- New listings increased 6.3% compared to 2014.
- Home Sales increased 8.1% compared to the previous year and
- Home Sale Prices increased 3.5%
Also, similar to the 2016 national real estate predictions, our source predicts that Pittsburgh will be the #2 go to market for Millennials! This prediction is in large part to Pittsburgh’s strong job outlook and general affordability!
While mortgage rates are also expected to increase, rents are expected to skyrocket according to our trusted source. Realtormag.com reports, “more than 85% of the nations markets have rents that exceed 30% of the income of renting households.” That combined with the above real estate statistics, and the fact that home values in Pittsburgh are expected to rise 3.3% over the next year, make 2016 a great time to buy in Pittsburgh!
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Until Next Time,