Real Estate Expectations in 2017
Personal political opinions aside, I think we can all hope that President-elect Donald Trump’s business background will mean a boost for the country’s economy. Trump has been relatively quiet about his plans for the housing market, but in this post I share what experts think we can expect in 2017.
Interest Rates Will Rise
Interest rates have increased since the election, so it seems the record-low rates homeowners have enjoyed in recent years is ending. This will likely affect younger homebuyers most.
In a November 30th realtor.com article, Chief Economist Jonathan Smoke, shared: “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.”
Price Increases Will Slow
With inventory at a premium, homes will continue to sell quickly, and prices are still expected to eise – though not at the rate we’ve seen recently. National home prices are expected to increase by 3.9%, from an estimated 4.9% in 2016.*
Millennials and Baby Boomers Will Lead the Way
Two of the largest generations in America – Millennials and Baby Boomers – are experiencing lifestyle changes that often lead to selling and/or buying a home. Millennials are getting married and starting families, adding to the first-time homeowner market. Baby Boomers are becoming empty nesters and looking toward retirement, which can mean downsizing. It’s likely these two segments will be major players in the real estate market over the next few years.