As we approach the upcoming busy spring Housing market, we took a closer look at the many predictions various experts have made for the housing market in 2017. Here are some of the most noteworthy ones:
1. Prices will continue to rise–but more slowly. Redfin predicts the median home sale prices to gain 5.3% in 2017 compared to 2016, which would not be a major change from the 5.5% year-over-year gain expected to close out this year.
2. More people will have access to home loans. Fannie Mae and Freddie Mac will raise its loan limits for the first time since 2006, increasing the the limits to $424,100 for most of the country and to $636,150 for the most expensive markets. “This change makes it easier for more homebuyers to qualify for a mortgage in high-priced markets,” Redfin said.
3. Fewer homes on the market and fast-moving markets. Inventory for 2017 is down an average of 11 percent in the top 100 metro markets, and improvement is not expected this year. Homes are selling 14 percent faster based on the tight inventory.
4. Housing Construction Starts Will Slowly Rise. New construction is not expected to keep up with demand in 2017. More and more renters are expected to become homeowners in the next decade as the market continues to recover.
5. Mortgage rates are forecast to stay low.
With Trump in power, lending requirements are expected to be eased, land opened up for development, and some experts predict this will stimulate home purchases. With employment slowly growing and wages moderating upward, the market may be set for more growth.
6. Millennials and boomers will be big buyers. More jobs are being created for 25- to 34-year-olds than any other age group, and wages are rising. Baby boomers are also looking to move as they reach retirement years.
7. Cities will see dense development with smaller homes near public transit. “Affordability” is a major issue that many mayors and cities see as issues for home owners. A solution is to build smaller homes in more dense areas near public transit.
For more information, see the following: