2017 will be a good year for the real estate market, according to the latest reports by Realtor.com® and Fortune.com. Growth will continue, albeit at a slower pace, and the home ownership rate is expected to climb to 63.5 percent, up from 62.9 percent in 2016. Here are five of the top housing trends predicted for 2017:
1. Millennials and Baby Boomers will dominate the market. Boomers are expected to make up 30 percent of the real estate market and will be more successful at closing because they’re less dependent on financing. Millennials will be 33 percent of the buyer pool, slightly less than expected because of higher interest rates.
2. Slowing price appreciation. Nationally, home prices are expected to keep rising, albeit more slowly—3.9 per-cent growth in 2017, vs. 4.9 percent in 2016. Small homes have seen much sharper price growth than larger ones.
3. Less inventory and faster-moving markets. There will be fewer homes on the market and what is available will sell quickly, as demand outstrips supply.
4. Growing families, make your move. If you’re looking to trade up to a larger home, you’re in the housing market’s sweet spot, and the first part of 2017 should be a particularly good time to strike. Over the five years between 2011 and 2016, the average price on a two-bedroom house climbed 59% nationwide, while four-bedroom houses rose a more modest 41%. Inventory has also risen at the higher end of the market, climbing almost 8% for homes in the $500,000 to $750,000 range.
5. Lock in a lower rate. If you’re ready to buy, now is a good time to pull the trigger on financing, since the record-low mortgage rates seen in 2016 aren’t expected to last. Average rates could rise as much as half a per-cent in the next year.
As always, the more flexible you are, the more choices you’ll have. Contact Big Canoe Realty at 770-893-2733, and let us do the hard work for you.