After meeting with my monthly group of Real Estate peers (who we all work for different companies we get together with once a month to go over the market trends, issues, advances and successes! ) I decided that our morning conversation needed to result in informing my public. We brought up what we all thought the market was going to look like this year and in the next few years. This got me excited to research a little more and share our thoughts and some thoughts of others with my general real estate public.
According to CBSnews.com Real estate as a whole will be experiencing some trends in the next year that may strongly influence your home buying and selling decisions.
Home prices have steadily increased and this will be causing some people who could afford to move back into the city metropolitan areas, to now be migrating to more suburbs and outlying areas for affordability. Increasing home prices and interest rates can push these people farther away from cities to be able to qualify to afford a home.
New builds are popping up all over the place again but the lack of labor workers and the cost of materials will force new home builders to pay higher wages to get quality construction laborers and quality materials. This of course will be passed along to the buyers and cause the cost of new homes to increase.
Millennials especially from the Midwest states are predicted by Realtor.com to stay and settle near where they grew up, instead of venturing out to other parts of the country and buying homes, or renting and living with roommates until they eventually settle down, marry and have kids. Some also are still living at home and not adding to the home buying pool. Home prices on the West coast including Phoenix, California and Settle will continue to rise. Often these trends can price some otherwise potential buyers out of the market. This may potentially be good for sellers in a sense unless they are too buying a new home. Very rarely to the stars align that it is a seller and buyer market at the same time.
Trends that we may see more of the builders building smaller homes for affordability purposes and cities creating more access to public transportation methods for people to commute from further distances.
“Zillow predicts rental rates will rise only about 1.5 percent in 2017, Gudell (of Zillow) said. This is due in part to an increased supply: A lot more multifamily rental units are being built, and many renters have doubled up with roommates. These two things have helped supply rise to meet rental demand.” Home rentals in outlying areas may still see a larger increase in rent as supply may not be as strong. But large families who need larger homes flock to the outlying areas where rent is usually cheaper than in closer metropolitan cities and towns.
It is predicted that interest rates that are still at historic lows, will continue to increase over the next year. So buyers who are looking to buy in the near future should consider doing so this Winter or early Spring rather than waiting until Summer or Fall to get the best deals without the risk of pricing themselves into a higher loan or less of a home by waiting too long.
If you have specific questions about the real estate market, what your home is currently worth or the options you have for buying a new/resale home, please call, text or email me for your personal consultation today.BLOG COMMENTS POWERED BY DISQUS