• Mortgage rates are expected to rise
  • Renting is still a big deal, but you can sway people into the lifestyle of owning a home
  • Technology is headed forward and homebuyers are following; you need to, too.

The market trends possibly occurring during the year will raise some eyebrows.

However, the concerns won’t dampen the LA real estate industry. Allow these concerns to become motivation for another great year in real estate.

Here are the top trends that I think are going to impact the LA real estate market:

Rising interest and mortgage rates

Thanks to the Federal Reserve, expect a 1 percent increase in mortgage rates this year. Encourage buyers to seek low interest and mortgage payments now. Lock in those low rates; the mortgage rate will increase 1 percent this year and every year afterward.

Increase in rental property

Buyers prefer renting to scope out possible neighborhoods before buying. Since the rent is increasing, buyers cannot afford to rent very long. Even if you continue to find good prices, the rent often increases when the lease expires.  Renters make the stressful decision to accept the new terms or move.

Likewise, renters who want to buy a home can’t afford it because of high rent costs and higher cost of living.

Increase of available homes

Yes, home sales are increasing.

A successful 2015 means fewer inventories to start 2016 and increased prices. While there are other reasons for the price hike, real estate agents need not worry. The prices won’t rise substantially, and it’s possible the low inventory won’t last year-round.

Virtual home tours

Here are a few reasons to do virtual tours this year:

  • Attract residents and out-of-state buyers to your company with virtual home tours
  • Convince sellers to create a video of the home
  • Film the interior and exterior of the home along with the surrounding neighborhood
  • Photos highlight a home’s best features; a video tour takes it to another level

Use your expertise

Use the creative part of your brain to sell homes.

Despite the trends, encourage buyers that ownership is better than being a tenant. The stability and freedom to relax in an enjoyable neighborhood are worth the investment. The Los Angeles market expects another stable year, and no change is good news.

With an influx of buyers coming in, 2016 is off to a promising start.

Tonya Jones is a writer who specializes in real estate. She has written various content for Textbroker, My SEO Articles and Blogmutt.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Black Friday starts now! We've got great deals on Inman Connect New York in-person and virtual tickets. Register now×
Cyber Week Sale: Get 1 year of Inman Select for $75.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription