Bidding goodbye to 2016 leaves us a pretty good year for the real estate industry. This is despite the ups and downs experienced. As 2017 turns its first few pages, here are some outlooks casted by experts on the field.
According to realtor.com, the industry will experience a moderation. But it will not be a deterrent for the pace of growth to be strong. Pricing will still be above average level of appreciation.
According to Jonathan Smoke, prices will start reverting to normal several years after the 2008 market crash. The effect would be for buyers to shoulder slightly higher prices than what houses were tagged the previous years.
There will be competition between two large home buyer segments - the millennials and the baby boomers. According to statistics, these two groups of home buyers are the largest groups who will demand houses because of their needs.
Image courtesy of Insurance Greenvilles
The millenials will demand houses because of their want for independence, family readiness, and investments. On the other hand, the baby boomers will buy houses primarily because of retirement and due to being empty-nesters.
Despite the financial constraints that will be largely brought by higher mortgages, the millenials will still be active in buying homes in areas where prices are moderated. There will still be key cities and areas where home prices will remain affordable.
The market is forecasted to be in a fast-moving phase. Median age of inventory will be at 68 days. This will be the time it will take a house to sell. This will be for the top 100 cities and is pegged to be 11 days faster than the national average.
2017 is a pretty exciting year for the real estate industry. Let's just keep our fingers crossed that it will be very good and very prosperous for all of us!