As a new year begins real estate leaders and industry experts are looking ahead to what 2017 may hold for home sellers and buyers. I have been reviewing reports and articles on what trends are expected to rise or fall over the coming months. While there are differences in what trends are anticipated, depending on the sources cited, I have discovered some themes, or similarities which are summarized below. If 2017 is the year for you to buy or sell property, understanding what could influence the market will help you have successful results.
The big question most publications are bringing up is how will the Trump Presidency affect real estate? According to a recent article published by Forbes, and another by Bloomberg, this question has already caused a bit of a stir, as mortgage interest rates have been on the rise since November, and they are not expected to stop. Higher rates can make mortgages less affordable, but they can also help spur buyers into locking down a better rate, which could in turn increase home sales for a time. While home prices are also anticipated to rise, experts overall are not ready to truly predict what the market will be like under a Trump White House.
Regardless of what may or may not come to be, home prices are projected to rise, especially in the West. As part of its annual Housing Forecast, Realtor.com has put together an infographic map showing where prices and sales are expected to climb, and by how much. National home prices are estimated to rise by 3.9% in 2017, with home sales growing by 1.9%. The West is the Best, and is anticipated to see much stronger growth, with price increases closer to 5.8% and sales up by 4.7%. The Sacramento region is expected to increase by 7.2% in home prices with a 4.9% growth in sales.
Going beyond the data figures, Realtor.com has also published what they see as coming trends for 2017. Millennials are expected to continue leading the way in home buyer markets, but so too will Baby Boomers. Both these generations are approaching ages when it is more common to change living situations. While the West is predicted to be the hottest region, many Millennials are already moving to the Midwest where homes are more affordable, in particular near colleges and universities. Home appreciations may slow down and inventories are likely to continue to be low, but the demand for homes will continue. This is good news for anyone planning to sell. With more buyers vying for fewer properties, listings tend to sell quickly, and at a higher price if the market is in high demand.
For another approach on 2017 trends to watch for, Market Watch, a Dow Jones & Co. publication, sees different trends on the horizon, yet also agrees Millennials will be the big buying group of the year. Market Watch has taken note of the growing trend to use drones when it comes marketing properties. With the FAA clearing the commercial use of these mobile cameras, real estate listings are anticipated to be focused on aerial footage. This new tool will be the next big thing to hit the market, possibly giving those who have drone footage a step up in the market when it comes to attracting potential buyers.
There is also a new community term on the rise. As we have been watching urban villages increase, suburban areas have begun to respond in kind, providing development updates which allow for more work and play near home. No longer just tracts of suburban houses, these neighborhoods are going Surban, and will offer more housing and lifestyle options in the coming years.
2017 is expected to be a year of steady growth with more people buying homes. Interest rates and sale prices are also anticipated to rise, but the Millennial generation is strong and ready to buy. No matter the generation or age, people looking to buy are interested in being able to enjoy community amenities close to home, and prefer living closer to where they work. As metro and suburban communities respond to the continued demand for mixed-use communities, these markets can continue to grow and remain viable.