23 Jan Forecasting 2017
Regardless of what happens in the next 12 months, one thing is certain – this will be a year of change and transition. But what do the political changes mean for housing? It’s a question that’s been on the mind of not only our industry insiders, but the population as a whole. One thing experts seem to agree on, the market will stay strong, at least for the next three years. But, keep reading for a few more details we’re expecting to shape the 2017 market.
A Modest Increase in Supply
Housing supply is projected to increase in 2017. But, that doesn’t mean that we’re going to see an influx of homes for sale, supply will still be tight, as it was in most of 2016. But, where we can expect to see a supply increase is on the new construction side, as sellers who aren’t ‘sold’ on selling their homes are less likely to enter such a quick market. This is a great sign for new home builders.
Millennials Continue to Buy
Long labeled the ‘renter’ generation, many millennials are finally taking the plunge and buying a home. And, this trend isn’t going anywhere soon. We can expect to see more former renters moving into the housing market in 2017. In fact, along with the boomers, millennials stand to dominate the 2017 housing market. However, what they’re looking for might not be what you’re expecting…
Still a Seller’s Market
With a tight supply and an unexpectedly high demand from younger buyers for resale homes,2017 will be as much, if not more of a seller’s market as 2016. We’ll continue to see homes sell quickly and at decently high prices, though we don’t expect home prices to skyrocket anytime soon.
An Increase in Rental Affordability
The good news for those who aren’t looking to buy a home in 2017! Rental affordability has been a hot topic as of late, but 2017 may bring a welcome increase in affordability for the multifamily and rental markets. And, it’s not only Millennials who will be looking to rent this year, the trend of boomer renters will continue to grow as the appeal of maintenance-free living gains ground.
The Fastest Market on Record
Interestingly, though we saw an incredibly quick housing market in 2016, experts forecast the 2017 market will be even faster. That would make it fastest housing on record, and of course, would continue the ‘seller’s market’ trend.
In many ways, 2017 will be unprecedented. But, for the housing industry, that’s not necessarily bad news. And, with some forecasts calling for a ‘strong’ market through 2020, it would appear that while we may have some adjusting to do over the next 12 months, sales should remain strong.