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Experts predict 2015-16 real estate market trends

Real estate investors and developers in Maryland and around the country often make their decisions after analyzing market trends and carefully considering the forecasts made by experts in the field. A Chicago-based group of advisers called the Counselors of Real Estate assess trends in the commercial and residential property markets each year, and it released its forecasts for the year ahead on June 24. According to the CRE, the behavior of two demographic groups will have the biggest impact on the U.S. real estate market in the coming year.

Baby boomers are retiring in ever greater numbers, and the CRE believes that this will likely continue to drive property prices up in popular retirement destinations like Arizona and Florida. The number of commercial property developments involving retirement homes or assisted living facilities is also expected to increase.

Millennials can be found at the other end of the demographic age spectrum, and the CRE says that it is less clear what impact they will have in the coming year. Fears of rising interest rates could prompt millennials to enter the housing market, which would push prices higher in urban areas. However, tight lending criteria and high down payment requirements could make buying a home difficult for millennials, and this will increase demand the for rental accommodation.

Predictions made by experts can help real estate investors and developers to better understand demographics and anticipate market conditions, but completing a project or transaction is rarely easy. Having important documents prepared and reviewed by experienced real estate attorneys could avoid disputes and prevent delays, and an attorney may also provide assistance when disputes arise over zoning or permit issues.

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