2017 will be a year of a changing real estate market, it’s your job to not only recognize these trends, but be prepared for them.
1. Millennials will start buying homes
The older millennials get, the more likely they are going to have the money to buy homes. Another year means an increase in number of millennial home buyers in the market. This doesn’t mean that every millennial is going to buy a home in 2017, but there will be a continual increase in millennials being able to afford homes.
2. Hesitance from foreign buyers
There is still a wealth of uncertainty surrounding the Trump administration, but one thing is for sure, foreign investors remain watchful and will continue to weigh the Trump presidency when making their purchasing decisions. Foreign investing won’t fully halt, but expect a lull during the first half of 2017.
3. Tighter inventory
The housing inventory is expected to continue to shrink in 2017. Let’s look at Seattle, WA for example. The population there has steadily increased for the better part of two decades. A population increase of 4 percent between 2010 and 2014 alone, according to the U.S. Census Bureau, and housing can’t keep up. This is the case across many coastal cities as more and more people move from middle America to the coasts. Housing affordability also remains a top concern as inventory tightens.
4. Continued home value appreciation
Home values have increased 64 of the last 67 months, nearly 35% nationwide, with no sign that this trend will subside. Some economists suggest a slowing rate of appreciation, but fail to see it stop. Home value appreciation directly correlates to the lack of inventory nationwide.