5 Ways the Housing Market Will Change in 2017
It is a tricky year to predict almost anything as things can all change at the drop of hat – but what are our best guesses about what the housing market will do this year? With everything at play, from changing climate to the stock market to the political climate in the United States, there are five things that are almost sure to shape the way we buy, sell, and invest in homes:
1. Jobs and Paychecks
One way the housing market will change in 2017 is to see an increase in jobs in energy, manufacturing, and finance. The hope is that there will be competition, which could mean an increase in wages. There is also a fear that too many of those jobs will be given to robots (see our blog about Artificial Intelligence or AI at http://www.jems-homes.com/rise-ai-spell-trouble-investors/). Sustainable job growth is likely to be pushed from coast to coast thanks to the growing technology field. Keep that in mind as we track the rest of the housing market trends for 2017.
2. Increasing Property Prices
Home prices are going up across the board in almost every part of the country. Part of this is due to the surging prices in urban areas – people can’t afford to move there or can no longer afford to live there and are flocking to the suburbs. Those are the areas where you can expect to see the biggest booms, especially in areas that are more affordable and offer amenities to young families.
3. Many New Builds
Dense urban areas are likely to see new builds in the forms of condo building, spec homes, and mixed-use projects. Suburban areas are likely to find more housing developments and new neighborhoods popping up on old farmland. Note that suburban land prices continue to rise, so you will find this happening on land closer to cities.
Eventually, this could lead to an over saturation of homes on the market. If you are looking to sell your home in 2017 or even 2018, the earlier, the better. Call us and we can help.
4. Mortgage Lending
The Trump administration has promised that they will make it easier to get credit and ease mortgage lending. If they follow through, this will mean more aggressive marketing and lower down payment requirements. At the same time, they may also cut back on some on some of the regulations and liabilities for the banks, making traditional home buyers seem unappealing to the banks – and their money will go to investors.
5. Interest Rates
The new buildings and spending will increase already climbing interest rates. Higher interest rates can sometimes lead to higher property prices and can price some people out of purchasing homes. The housing market in 2017 promises to see an increase in prices in areas where the cost of living is higher as well. There will be potentially two rate hikes this year, impacting investors in particular.
While we can’t always accurately predict what will happen in the housing market in any given year, it is important to pay attention to trends – or at least work with a real estate professional, like us, who do know our markets.