Are you planning to buy or sell a home in 2017? Staying up to date on what is trending in the real estate market could work to your advantage.
As we start this year anew, especially on the heels of a new presidency in our country, it might be early to predict what we can expect in terms of changes to housing policies. As we look at the trends of 2016, however, and how those will carry over, we can anticipate certain movements in the real estate industry that could affect the way buyers and sellers make their own choices in 2017.
Check out these five real estate trends expected to shape the market in 2017.
- Home values will increase, but more slowly than in 2016. In 2017, home values are expected to increase by 3.6 percent, which is actually lower than the 4.8 percent rate of increase we saw in 2017. This slow in appreciation is an effect of the market’s recovery after the market downturn of 2008.
- Mortgage rates will increase. Mortgage rates were at record lows in the years following the last market crash; however, that is starting to change. The Federal Reserve has indicated that three more increases to its benchmark rate can be expected in 2017.
- Millennials and baby boomers will account for a large portion of buyers. The oldest millennials are reaching their mid-30s—the age at which many people start thinking about and acting on purchasing a home. Also, baby boomers are reaching their late 60s and are buying homes in which to spend their retirement years.
- New construction homes will increase in number and price. Due to a current labor shortage in the construction industry, builders are offering higher wages for workers. These higher wages will be passed onto buyers. Also, the number of new homes will increase. The average annual rate of new groundbreakings reached 1.163 million in the last days of 2016—a 5 percent increase from 2015.
- Buyers will seek out the suburbs. The suburbs are offering buyers more options for affordable housing. Following the market downturn, the rate of city living dropped and more people flocked to cities to live. Now, more people are looking to the suburbs for affordable places near the city but also close to suburban amenities.
If you are looking to buy or sell a home in the Auburn-Opelika area in 2017, contact Realtor Ryan Roberts today at 334-750-9872, or email [email protected]!
