Now that the presidential election is over and we are a month into 2017 it’s time we look at the housing market. 2017 could be a year of change, especially with new faces in the White House. Though there are no certainties where the market will go this year, here’s what is expected to happen in the world of real estate over the coming months.
The population of people in the housing market is shifting. With millennials now in their working years, many are looking to buy a home. With more people in the age of home buying, demand in the housing market is expected to increase again this year. This will make for a competitive market. In 2016, there were record rates for quick sales with an average market stay of about 50 days. And 2017 is expected to have even quicker turnarounds.
Prices of homes are expected to rise. However, this rise is expected to be slow and steady and follow trend with the past few years. In 2016, prices rose about 5% and are expected to do so again in 2017.
Mortgage rates are quite unpredictable this year, but are estimated to change quickly and likely go up.
With increasing prices and mortgage rates, the affordability of a home for people earning median incomes is decreasing. As income rates do not follow the increasing rates of prices and mortgage rates, affordability becomes an issue. Though prices will make it harder to buy, it is still estimated that demand will continue to increase.
Medium-sized cities will be popular in the coming year. As housing affordability decreases, especially in big cities, medium-sized cities become the trend for young home buyers looking for affordability. Medium-sized cities may offer less career options, but millennials are willing to commute or get creative.
There is possibility that there will be easier access to credit. A possible shift in financial regulations could allow banks to loan to a wider range of buyers. But this is not certain and only time will tell where financial regulations go this year.
New buyers, rising rates, easier access to credit. Medium-sized city trends. A glimpse into what 2017 is to bring in the world of real estate. All of these trends mostly focus on the buyer. Sellers can expect good selling prices and short market stays. As for new builds, there are going to be increasing prices and delivery schedules as regulations and increasing costs put pressure on the industry. This will draw out projects and pre-sales on buildings will be less likely.
There are the top highlighted trends for the coming months. Whether you are buying, selling, looking to build or remodel, keep these trends in mind. You may have selling competition, buying competition or a longer timeline to build. Wherever you fall in the world of real estate this year, do your research, know the market, and use the help of professionals to get the most out of your time and money.
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