We can all agree that 2016 was a bit of a roller coaster, with many highs and lows. One thing is for sure; the theme for the year should definitely be to expect the unexpected.
Making predictions for the upcoming year is challenging because no one can truly say for sure what the future will bring, however, there are several trends that Realtor.com is predicting for the real estate market in 2017. Here are some of the most significant predictions:
New Homebuyers and Millennials will Move to the Midwest
For young homebuyers, affordability is a huge factor in purchasing a home. One of the trends that we started to see in 2016 was a younger buyer moving to the Midwest because of the affordability factor. Millennials and recent graduates will be more likely to settle near large Midwestern markets that are generally more affordable than coastal metropolitan areas. Popular cities include Omaha, Columbus, Des Moines, and Minneapolis.
Baby Boomers and Millennials will Have the Most Impact on the Market
Both the baby boomer generation and Millennials are approaching the age where large real estate decisions must be made. For millennials, it means buying their first home while the baby boomers will be looking to downsize or relocate during their retirement.
Fewer Homes that are Selling Faster
According to Realtor.com, the inventory of homes for sale is actually down about 11% in the top 100 metropolitan markets in the U.S. In addition to this, the average time it takes to sell a home has also gone down to an average of 68 days from the same data. This means that in the next year, we will notice fewer homes for sale. However, the homes for sale will stay on the market for less time and get purchased relatively quickly.
Rising Prices in the West
Many of Realtor.com’s top housing markets are located in the west. With such demand, it only makes sense that the prices in these areas increase. Realtor.com predicts a 5.8% price increase and a steady increase in the sales in the west too. Some of the most popular markets include Tucson, AZ, and Los Angeles, Riverside, and Sacramento in California.
Overall, Price Appreciation will Slow Down
Many markets will continue to see above-average price appreciation; however, it will slow down compared to past years. Realtor.com predicts that as long as the inventory of homes for sale stays the same, there will continue to be above-average price increases.
By using the most up-to-date and relevant data, we can paint a rough picture of what 2017 will look like for homebuyers. When it comes to buying your first home or entering the real estate market, it’s important to have someone by your side who can help make heads or tails of the trends in order to ensure you make the best decision possible. At Tarvin Realtors, we help first-time homebuyers and mature buyers alike, find the right property that exceeds expectations and fits the budget. For help with your real estate questions and concerns, call us today at (201) 444-0690.