Real estate experts have released their projections for 2016 home buying trends. These trends center on the primary age groups purchasing homes, the influence of technology on the industry, the types of places they’re buying, and the rise of quirky attributes.
In every area, the future is looking good for our region. Buyers are tending to be grouped in the Generation Y age group. 32% of all buyers are Gen Y, and 68% of first-time buyers also come from the Gen Y group. These buyers are more likely to rely heavily on technology in their home search. Technology within the industry is evolving to suit these buyers, with new apps revealing new ways of finding the perfect fit for each buyer in the right neighborhood. From Shopkick-like apps for real estate to listings with more photos and descriptions, technology is making the home search more efficient. There’s also expected to be an influx of investors into the market, though it is still expected to be a buyer’s market.
2016 location predictions anticipate buyers heading back to the city. The benefit for the Smoky Mountain region is the possession of the combined attributes of living with nature and having easy access to the shops, restaurants and entertainment of a larger city. Sevierville, Pigeon Forge, and Gatlinburg all offer the community of a smaller town with the amenities of a larger city. When you want to be able to choose from a plethora of hiking trails, museums, stores, and entertainment, the Smoky Mountain region is the right place for you.
Next year’s buyers are more inclined to purchase a home with quirky attributes. The Starbucks effect states that a home near a Starbucks location sells more than an identical home not near a Starbucks, and averages a 30% increase in value over a 15-year time frame. This could be partially attributed to Starbucks purchasing property in areas with rising property values. Distressed homes are still popular, as buyers and investors are still hunting for a deal.