This year was filled with surprises. We’re certain that there will be a lot changes in 2017.
We’ve seen increasing interest rates since the election. This trend will likely affect the youngest generation of home buyers.
“With more than 95% of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some first-timers out of the market,” says Chief Economist Jonathan Smoke.
The 2017 national real estate market could be slower compare with the past two years according to the forecast.
“I would characterize our 2017 forecast as a moderation, as opposed to a slowdown. The pace of growth is still strong and, for pricing, still represents an above-average level of appreciation,” adds Smoke.
In 2017, Millennials and baby boomers will power demand for at least the next 10 years. The millennials will make up 33% of buyers according to Smoke.
The inventory of homes available is expected to be low and conditions limiting home supply are not expected to change next year.
Also, 3.9% growth year over year is the forecast on national home prices from an estimated 4.9% in 2016.
“Prices are still likely to go up at an above-average pace as long as supply remains so tight. The inventory problem is not going away,” Smoke says.
To read more about the trends in real estate in 2017, click here.