As we bid farewell to 2016 we’re excited by the prospects of what a new year will bring. With the United States at its strongest economic position in over a decade and unemployment at its lowest level since August 2007, the foundation is indeed laid for a prosperous 2017 housing market. Here are the trends and factors that will impact the residential real estate market.
Although home prices have been on a steady incline in recent years, experts predict that increasing interest rates will help stabilize home prices. According to The National Association of REALTORS® (NAR) price growth will slow to 3.9% from 4.9%. This means that buyers may be in a better position and homeowners who are now seeing built up equity in their homes may be more motivated to put their home on the market sooner rather than later.
Demand for housing is expected to heat up in 2017. In fact, NAR predicts that existing homes sales will top 6 million in 2017. Good news is that many of these new homeowners will in fact be millennials who are coming into their “main home buying years” and seeking homeownership for the first time.
Source: Coldwell Banker Inside Out