Industry trends to watch for this year
The real estate market changes every year. If you are looking to buy or sell, or if you are just particularly interested in the industry, you understand the importance of keeping your finger on the proverbial market pulse as it can help determine whether or not it’s a good year to act on your real estate goals. Regardless of the reason behind your interest, these are the four major trends to watch for as you dip your toes into this year’s market.
4 real estate trends for 2017
1. The market becomes less seasonal
With advancements in technology, a more mobile workforce, and the growth of international buyers, seasonality in the real estate market has become less impactful on home purchases and sales than in past years. Some even consider the winter market to be more favorable for selling your home as there is less competition. The only place where seasonality still plays a role is in the suburbs, where curb appeal is an important factor in the competitive nature of selling a property
2. Young professionals flock to medium-sized cities
Another trend we’re seeing among younger homebuyers is their migration to medium-sized cities. Smaller cities in the Midwest are attracting young professionals with decent-paying jobs because of their low cost of living. The home prices and even rental prices are much more affordable, giving millennials a larger amount of disposable income to pay off debt and save for retirement.
3. More mortgages with higher rates
In December of 2016, the federal reserve raised interest rates for just the second time since 2006, and it is predicted that we will see three or more rate increases in 2017. Higher rates means mortgages become less affordable, but another trend has pointed to the idea that mortgages will become more easily available due to looser lending standards. The increase in rates may then be offset by an ease in mortgage accessibility, so the market may not be impacted as seriously.
4. More new homes at a less affordable price
The trend for new home construction has been positive over the past year. It’s expected to continue to rise in 2017, as there will be more demand for home builds with looser lending standards. With these newly built homes; however, comes a heftier cost to the construction price. And because of a labor shortage in the construction industry, contractors are forced to increase their prices to buyers so they may offer a more incentivizing pay rate to employees.
Real estate has been steadily gaining momentum over the past few years, but with the first increased rates by the federal reserve in nearly 10 years, we’ll see how the market holds up as the economy adjusts. Keep an eye on international buyers, young buyers, and the cost of lending to help keep you oriented with this year’s market. If you’re ready to buy or sell your property, contact Anselmo Lindberg & Associates so we can make sure the process runs as smoothly as possible.