New Year brings new trends for the real estate market. Here are 9 trends that we can expect in 2017.
2. Home values will continue to increase but at a slower rate than 2016. Experts are expecting values to increase by 3.6% which is a slight decrease from last year's 4.8% increase. This slight decrease shows that the housing market is normalizing and recovering from the housing crisis.
3. More buyers will be looking to purchase in the suburbs. As home value increase it will become less affordable to live in big cities which will draw more buyers to look outside the city and into the suburbs.
4. Pricing of new homes will increase. As the demand for construction workers rises so will the wages for these workers causing a spike in new construction homes.
5. Millennials moving to the mid-west. These markets are close to large universities, offer well-paying jobs and are generally more affordable for young homebuyers.
6. West Coast home prices will continue to rise. Population growth will lead to job growth which will lead to a higher demand for homes causing the prices to increase even more.
7. Cities will see denser development with smaller homes. The biggest problem cities are facing is an affordable housing market. We will see smaller houses being built within the see to make the housing market more affordable.
8. Renting will become more affordable. For the first time in a while income is increasing at a faster rate than rental prices making renting more affordable.
9. Increase in mortgage rates. The housing market crash brought mortgage rates to an all time low over the last few years but as the market stabilizes mortgage rates will increase. If you are looking to buy the sooner the better!
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