The number one question every real estate agent gets is, “How is the market?” The market in 2016 is going to look very much like the market in 2015. After rubbing the crystal ball this morning, here are my best 2016 real estate predictions:
- As I said above, 2016 will look very much like 2015. It will be another wild and crazy market. If it felt like an out-of-control roller coaster, buckle up and get ready for some more.
- Inventory will be tight and there will not be a lot of choices. Lowest months for inventory will be January, February, and March. This puts the leverage in favor of the seller and usually yields a higher price because buyers have less choice. Peak months of inventory will be May, June, and July. Leverage will swing in favor of the buyer as they have more homes to choose from. However, it will be a seller’s market for $350,000 and below with those homes receiving multiple offers within a few hours of hitting the market.
- Interest rates have already bumped up over 4%. This trend will continue throughout the year, but the Federal Reserve will be cautious, inching up the interest rate ever so slowly without fanfare or panicking the markets.
- The Denver market selling season has been starting earlier and earlier. It used to really heat up towards the end of April, but these days the season is starting in mid-March.
- The majority of homes will continue to sell between the middle of March and the middle of July. This trend has been consistent for many years.
- If you are a luxury seller, the data is pretty clear that the majority of homes sales in your price range are happening between the middle of March and the middle of July. That’s not to say that luxury homes do not sell in November… they do. But if you want to give yourself the best chance to sell your luxury home, make sure that it’s on the market mid-March through mid-July. If it doesn’t sell, try again next year.
- The market will tail off and slump at the end of July, August, and September. It will pick up again in October, November, and December. This has been the trend every year for the last four years.
- Beware of For Sale By Owners. It may sound like a good deal to buy a home from an FSBO but we saw litigations in this area of real estate soar in 2015. FSBO’s make many mistakes when selling their homes like failing to disclose adverse facts about their house.
- The year 2015 was the most contentious year in real estate that I have ever experienced. I would expect some of the same this year but I pray that it’s not. Be prepared; try to make buying a home fun again and go in with the attitude that it needs to be a win-win situation for both parties. If you do that, it may be a pleasant experience.
- Don’t believe everything you read on the internet and see on HGTV. Rely on a trusted real estate professional. I realize that this is not a prediction; but I foresee more and more people relying on what someone said on Facebook or Yelp instead of relying on someone that negotiates 100 sales a year.
Dan Polimino is a Broker/Owner with the Colorado Dream House Team, Keller Williams Realty DTC. Contact the Colorado Dream House Team at 720-446-6325, firstname.lastname@example.org, codreamhouse.com or coloradodreamhouse.com