In 2016 we saw the housing market become very competitive. There was an influx of buyers, but the number of sellers seemed to plateau. Many factors made 2016 interesting, such as continued record-low rates, a perceived lack of new home production from builders, and the millennial market began to show interest in buying homes. A “Housing Outlook for 2017” article from Forbes, discusses eight predictions for 2017 covering similarities and differences from 2016.
Here are some of the expectations for 2017:
- Prices will continue to rise—but more slowly. Real estate brokerage Redfin, “expects the median home sale prices to gain 5.3% in 2017 compared to 2016.” David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices added to the conversation stating, “With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends.”
- Credit availability will improve—maybe. While the Trump Administration has not set out to directly impact the housing market, expected changes and deregulation of the Dodd-Frank Act could have an effect on banks and their ability to provide loans to a larger variety of buyers.
- More millennials will become homeowners—and renters. “According to Zillow half of all buyers are under age 36 … Of course much of this is due to the fact that Millennials—adults born after 1980—are now the largest adult generation and make up the greatest percentage of the workforce.”
- Competition will grow. Redfin began measuring the average time that homes were on the market in 2009. In 2016, Redfin recorded the average time was just 52 days. It is expected that this time will be even shorter in 2017.
If you’re considering entering the housing market in 2017, it will be vital for you to know and understand what is happening in the market. To read more of the Forbes article, click here. If you’re looking for more personal information on your situation and surrounding market, talk to one of our Mortgage Experts.