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Eye on real estate

Top five trends to expect this spring

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April 12th, 2016

Real estate publications have been reporting the top five real estate trends to expect this year since early December 2015, but now that the spring market is shifting into high gear, what do those trends mean to people selling now?

For older generations who are looking to shed the responsibilities of home maintenance by moving to Seabrook, in Tinton Falls, N.J., the top five trends may have different outcomes than for those who are buying a single-family home in the area. Let’s take a look.

1. Back to “normal.” According to realtor.com, the market will balance out with steady but not outrageous growth in home sales and prices. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes real estate reporter Jonathan Smoke.

“This is good news for people moving to Seabrook or thinking of putting their house on the market this year because it explains that the housing market is still moving and not going into another standstill,” says Seabrook Personal Moving Consultant and local real estate agent Laurie Williamson.

What’s more, the job market has rebounded in New Jersey with plenty of growth. “That means more buyers are feeling confident and will be looking for houses to buy this year,” Williamson says.

The combination of those two factors is a home run for people looking to sell and move to Seabrook. 

2. Millennials moving in. Millennials—buyers between ages 19 and 34—represented one-third of total sales in 2015, and that trend will increase in 2016, making this the best year to sell in the near future, according to realtor.com. 

What’s more, older Baby Boomers looking to right-size are providing much of the inventory millennials desire. 

However, Williamson says, “Millenials are not interested in fixer-uppers. Therefore, it is very important to take advantage of all Erickson Realty and Moving Services offers by meeting with a personal moving consultant, like me, who will advise on preparing the house for sale and pricing correctly.”

Each Erickson Living community has its own local personal moving consultant who provides complimentary coordination of all realty and moving needs, including downsizing, home staging, packing, and selection of a real estate professional.

3. Rising mortgage rates will spike sales. The move by the Federal Reserve to guide mortgage rates upward will spark a temporary spike in real estate activity. However, this year’s predicted rate hike is expected to be minimal.

“Even with the increase, interest rates are still low enough that buyers want to purchase,” says Williamson. “It continues to be a great market for seniors to sell and make their move to Seabrook.”

4. Buying more favorable than renting. With rents rising higher and higher, in many parts of the country buying is more affordable than renting. Renting households that can qualify for a mortgage are more likely to enter the market as serious buyers this year. 

“Rents have risen, making buying the smarter choice,” says Williamson. 

5. Gen Xers ready to buy. Trends no. 3 and no. 4 will also cause older buyers to enter the market or trade up.

Gen X (ages 35 to 49) is more established professionally, seeing higher income than Millennials. They may be looking to trade up their homes. They can use the value of their current house to springboard into a larger one. 

Overall, strong job growth and consumer confidence are expected to fuel this year’s real estate market. 

The real estate market at the Jersey Shore suggests that 55-plus communities and properties over $1 million are selling as well as in North Jersey commuter areas.

“It all depends on where you live, so it is an advantage to meet with a personal moving consultant to determine where you are and what the best approach will be for your sale,” says Williamson.

“This year will be a good year,” she concludes. “In 2014 and 2015, every person who reserved an apartment home at Seabrook moved and closed on the sale of their house. We have no reason to believe that this trend will change in 2016.”

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