What an amazing year 2015 was for home sellers, and 2016 promises to be even better. By December of 2015, with 5.26 million sales, we had seen a more active housing market than in nearly a decade. But here’s the twist — that growth wasn’t a fluke. It signaled a larger shift in buyer behavior, financial confidence, and market accessibility. And that shift has only gained momentum.
Whether you’re a homeowner, investor, or first-time buyer, there are *real, measurable reasons to be optimistic*. Let’s dig into why 2016 isn’t just “good” — it may go down as one of the most *strategically advantageous* years to get involved in real estate.
Table of Contents
- 1. Mortgage Rates Still Sitting Near Historic Lows
- 2. Surging Buyer Demand Across Age Groups
- 3. Inventory Tightness Means Stronger Returns for Sellers
- 4. Home Values Are Growing — But Not Overheating
1. Mortgage Rates Still Sitting Near Historic Lows
Despite fears of rate hikes, average mortgage rates have remained astonishingly low. In fact, the 30-year fixed hovered around 3.85% in early 2016 — far below the 6.41% average from 2006. This has kept monthly payments manageable, even as home values increased.
| Year | 30-Year Fixed Avg. | 15-Year Fixed Avg. |
|---|---|---|
| 2011 | 4.45% | 3.68% |
| 2013 | 4.17% | 3.25% |
| 2015 | 3.89% | 3.10% |
| 2016 (YTD) | 3.85% | 3.03% |
Low rates give buyers more purchasing power, and for sellers, that translates into quicker closings and broader offers. *In short, money is cheaper to borrow now than it has been in over a generation.*
2. Surging Buyer Demand Across Age Groups
Millennials have finally entered the housing scene — and not quietly. In 2015, buyers under 35 represented 35% of all home purchases. Meanwhile, Gen Xers have begun moving up into larger homes, and Boomers are downsizing into smaller, more efficient spaces.
- Millennials are seeking proximity to work and public transit
- Gen X buyers favor larger square footage and backyard space
- Boomers show preference for single-story layouts and walkability
This cross-generational surge has brought a *fresh, diverse energy* to the market. More importantly, it’s sustained demand across nearly all zip codes — urban and suburban alike.
3. Inventory Tightness Means Stronger Returns for Sellers
Home inventory remains limited in most regions — especially for mid-range homes. According to Redfin, 2015 saw a 9.2% drop in available listings, and 2016 began with even fewer homes on the market. This has led to more offers, faster sales, and *higher-than-expected closing prices*.
- Average days on market dropped below 42 nationally
- Multiple-offer scenarios rose by 22% from the prior year
- Sellers in hot markets like Denver and San Diego saw 98–102% of asking price
For sellers, it’s simple: less competition equals greater leverage. The absence of surplus inventory has been a driving force in both pricing stability and speed-to-close.
4. Home Values Are Growing — But Not Overheating
Unlike the early 2000s, where unsustainable spikes led to collapse, the current appreciation rate is grounded in real demand. The national median home price rose about 6.3% in 2015 and was projected to climb another 4–5% in 2016. That’s *steady, manageable growth*.
Buyers aren’t being priced out overnight. And investors aren’t dealing with bubble-like instability. *It’s a market based on fundamentals*, not hype. More importantly, it’s inclusive enough for a wide range of income levels and housing needs.
Conclusion
There’s real momentum in the housing market — and it’s not driven by speculation or artificial triggers. It’s driven by people: new families, long-time renters, retirees, and entrepreneurs. 2016 has already demonstrated that opportunity is alive and well in real estate. Whether you’re listing your first condo or buying your forever home, this is a moment worth leaning into.