As the year comes to a close we look to the future and what it holds for us. 2016 has been full of ups and downs and is one for the history books. The real estate market has graced us with low-interest rates, but tight inventory and rising prices have hurt us. With the Fed raising interest rates for the second time in a decade and a new year beginning, here are a few predictions you can expect for 2017.
- Cities will focus on denser development and smaller homes close to public transportation and urban centers.
A movement toward revitalized downtowns are creating surban, the collide of suburban and urban.
- More millennials will become homeowners
Half of all buyers in 2016 were first-time buyers, and this is expected to increase. Millennials are also much more racially diverse, meaning more people of color will become homeowners. Even with affordable housing decreasing, the alluring desire to own a home is increasing amongst this younger generation.
- Rents will become more affordable as incomes increase
Apartment rental growth rate is expected to flatten out in the next coming years. Rising incomes and slowing rent appreciation is projected to make renting a home more affordable in 2017.
- The amount of commuters will increase
As more people move out of the cities and into the suburbs seeking more affordable homes, the number of commuters will increase for the first time in a decade.
- Home values are expected to grow 3.6 percent
Relief for buyers will come in the form of slowing home prices. 2017 will mark a new stage in the housing market economic recovery. In 2016 alone, home prices rose 4.8 percent, in the new year that number is expected to drop to 3.6 percent.