Real Estate Predictions for 2017

It’s Going To Be A Great Year

Most experts are predicting a strong year ahead for Real Estate in 2017. Here’s a summary of what those experts are saying:

Two big factors are coming into play in the coming year: 1) moderately rising interest rates and 2) millennial buyers coming into their main home buying years.

Let’s start with the millennials. The oldest of that huge group are pushing into their mid 30’s and many are ready to settle down, start a family and buy a house. Add to that, more jobs being created for this age group than any other and their wages are rising. At the same time the boomer group are looking to downsize, in many cases, as they head for retirement. Add these two up and you have a robust market for buying and selling.

We’ve seen the first of what are expected to be 4 rate increases from the Federal Reserve. Remember even with these we will still be at record low interest rates and the increases are expected to be small. Having said that, as a buyer or seller, this points to acting sooner rather than later, if you’re intending to do a transaction next year.

Home values are expected to rise about 3.6% to 5.2% in the coming year, according to CoreLogic, and with SoCal prices back where they were before the crash we are making a steady climb, just as the market has done long-term for decades. California is leading the nation in job growth and than means population growth, more people competing for homes and subsequent price increases.

The Fiscal Times predicts there will be less cash buyers in the market and less foreign investors while at the same time it is getting easier to get a mortgage with some loosening of restrictions. That should make it easier for the average buyer.

One interesting trend reported is a greater focus on smaller homes by the building industry, more affordable for first time buyers and a higher demand for homes close to the city center.

So, it looks like we are in for a good year. If you have any questions or are looking to buy or sell, give me a call, I’m always happy to help my clients navigate the process as easily as possible.

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