Predicting what will come in the next year, is just that – a prediction. The future is never set in stone. And, this is no more true than with with the nation’s real estate market. While we can predict and foresee what we think will happen, the real estate market can change on the drop of a dime. And, a new President makes it even harder to determine what will occur in the real estate market in the coming year. While the future is uncertain, here are eight 2017 real estate market predictions:
2017 Real Estate Market Predictions
Big Buyers – Millennials and Baby Boomers
- Millennials – With the oldest Millennials in their mid-30s, we will start to see a trend of Millennials getting married, having children, and purchasing their first home.
- Baby Boomers – As Baby Boomers reach their late 60s, many will look to move for their retirement years. Unlike past years when Boomers would move to warmer climate locations like Arizona and Florida, experts predict that more Boomers will choose to move closer to their family.
Slight Increase in Home Values – In 2016, national home values rose by about 4.8 percent. Experts predict that home values will continue to grow in 2017, but slightly less than in 2016. The increase in home values in 2017 is predicted to be around 3.6 percent.
Move to Suburbs for Affordability – After the market crash of 2008, many were able to move back to the city and take advantage of lower housing prices than before. However, with the market stabilizing, experts predict a trend of individuals moving out of the city to the suburbs for housing options in their price range.
New Home Build Price Increase– With a shortage of labor in the construction industry, experts predict the value of new home builds will increase in 2017. This lack of labor is forcing builders to pay higher wages to employees to be competitive.
Millennials Settle Down in Midwest – Instead of moving to states along the coast, experts predict that more Millennials will choose to stay and make the Midwest their permanent home. Predicted go-to spots include Madison, Wisconsin; Columbus, Ohio; Omaha, Nebraska; Des Moines, Iowa; and Minneapolis, Minnesota. While experts do predict more Millennials to settle down in the Midwest, they do not foresee an increase in Millennials moving to those cities.
West Coast Prices Continue Upward Trend – The West Coast states already have some of the most expensive prices in the country, and it looks like that upward trend will continue in 2017. Why are the West Coast states so popular? Where there is job growth, there is an increase in population! Since the 2008 recession, the Western States have been outperforming the Eastern States with more significant job growth.
Improved Rental Affordability – According to Zillow, rental rates are predicted to increase by only 1.5 percent in 2017. This decrease in the increase of rental prices is the result of an increased supply of apartment buildings and rental units around the country.
Increase in Mortgage Rates – Since the 2008 recession, the country has seen some of the lowest mortgage rates in history…and even more than that, the low levels stuck around for several years. However, this looks to change in 2017. As the market normalizes, mortgage rates will start to increase. So, if you’re considering purchasing a home in the next year, act now when mortgage rates are lower!
Remember, these are just predictions for the upcoming year. The future is uncertain – we will just have to wait and see what the future holds for the 2017 real estate market!
Do you have any questions about the real estate market in Georgetown? Give us a call. We would love to answer any questions you may have.
Resources:
http://www.cbsnews.com/media/9-real-estate-trends-to-expect-in-2017/9/