5 Things we Need to be Telling our Clients about 2017

By
Real Estate Agent with EXP Realty

Last week I had the privilege of attending two real estate forecasts for 2017. One was with Ted Jones, chief economist for Stewart Title and Steve Harney, CEO of KCM. During the Recession I poured over economist’s forecasts and found most of them less accurate or entertaining than the weatherman. The opposite is true of both Ted Jones and Steve Harney. Though their points of view are different, each echoed the direction of the other, and it’s all backed by data. There may be some thunderclouds, but we’re in for a sunny real estate market. 

  1. Millennials surpassed Boomers as the largest generation, (Born 1981-1997) there are 83 million of them. Why does this affect real estate?  Because the average first time buyer is about 31, and some are younger. 70% of them would like to buy, but they are cautious after the recession, and know what they don’t know. They don’t want to live in their parent’s basement, they need you.

  2. There are more jobs than ever historically. Unemployment declined to 4.6% in November,   payroll employment increased by 178,000 jobs. Even better, new jobs are in the professional, business service, and health care industries.

  3. We’ve seen a 14 year retail boom. Brick and mortar stores are not disappearing, they’re popping. At www.thestorefront.com, you can find a pop up rental for a few hours or days in 7 cities around the world. SnapChat, Nike, and startups take advantage of vacant spaces to test pop up shops without a long term commitment. Retail is literally a moving target. Millennials will research online, but prefer in store experience where they can bag a bargain to go.

  4. Renting costs have way outpaced owning. Benefits of renting pale in comparison to having a place of your own. Where’s the best place in Minneapolis for Millennials to dine on a Friday
    night? In their own brand new town home with Ikea cabinets! By Mid-March they’re waiting for their tax rebate to spend on remodeling the basement. 

  5. Entry level buyers are back. The surprise is that they aren’t buying entry level homes, they are going for the move up home. They intend to stay longer. Before the Boom, average time in a home was 6 years, post Boom, it’s over 9 years. There are layers of reasons, but buyers are expecting to stay longer in their first home. 

Cheap energy is here to stay. The Permian Basin is 800,000 acres in west Texas that competes with Saudi Arabia. Technology has production costs down to $2.25 per barrel, so low that you can keep driving that gas guzzler forever. Shame on you. Cheap gas means more jobs, cheaper travel, building costs, heating, and lighting your home. It also means that there isn’t a lot of incentive for alternative energy.  Shame on us.

 

Let the New Year begin!

Posted by

Mary Jo Quay

“That’s what I do: I move people—H O M E.”

 Phone: (612) 384-1360

Comments (6)

Julie Larson Realtor® Sarasota FL 941-882-0322
PalmerHouse Properties Florida - 941-882-0322 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of moving...ThinkSuncoast.com

Thank you for the encouraging forecast, Mary Jo Quay!!!  :)

Dec 13, 2016 08:55 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Great post with some very interesting links Mary Jo Quay 

Jan 13, 2017 04:59 PM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, most Buyers appreciate the education we as real estate agents offer.

Jan 13, 2017 07:52 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

not sure the source of your retail info as I just heard on the news that major department stores are making huge cuts because on line ordering far out performed brick and mortar retail over the past 18 months.  I am guilty though, I did most of my holiday purchases from my computer.

Jan 14, 2017 11:13 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Mary Jo. This is a great post, and I love the optimistic information you shared. I think 2017 is going to be a good year for real estate. 

Jan 25, 2017 02:14 PM
Mary Jo Quay
EXP Realty - Minneapolis, MN
I Move You Home

Thank you Deb, we hope for the best, plan for the worst. But, I think it will be a good year for real estate. 

Jan 25, 2017 06:05 PM

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