6 Real Estate Trends That Will Shape 2017
What You Need to Know About 2017 Home Real Estate
As 2016 ushered a surprising twist to the nation’s political climate, many people around the United States are also anticipating a great deal of change in 2017. With impending changes for economic and real estate industries, it is now more important than ever to stay apprised of upcoming real estate trends.
Ready to learn which trends will shape the year ahead? Read on to learn about the top 6 home industry trends that will impact 2017 the most.
1. Millennials Will Make Waves in Home Markets
As one of the largest generations in American history, millennials are shaping the flow of the nation in political, social, cultural, and economic waves. Millennials are graduating college, pursuing careers, and achieving success in today’s economic climate, and in 2017 the group will approach milestone moments, such as having children, marriage, and yes, buying a house.
The National Association of Realtors estimates that more millennials are expected to buy a first home in 2017. Last year, the NAR recorded “17% of buyers under 35 were able to save enough for a down payment for a home within a year.” While millennials are still influenced by student debt, this group remains capable of saving and accruing enough money to purchase their first homes.
Interestingly, NAR’s managing director, Jessica Lautz, claims that “many of those buyers have saved enough to go with something more than a condo unit or a starter home… and with the markets doing so well, and interest rates as low as they are, ,illennials who have paid down their student debt and built up their cash may be in a position to buy more house than real-estate agents might think.”
With this impressive influence in the home real estate market, 2017 home buyers should be prepared for competition from this group.
2. Gen Z Will Start to Make Headway
Don’t assume millennials will be the only ones making waves in 2017. Next year’s home real estate trends also predict growing interest from another group: Gen Z. While Generation Z is still young, with most of its population in their teens, the first Gen Z–ers will reach their 18th birthdays in 2017. With this milestone, Gen Z will be on the cusp of starting to buy homes.
NAR research director Lautz also shares that market research shows, “Gen Z will come of age with low interest rates, better job prospects and higher wages to help cushion the high costs of college education.” And this generation values homeownership.
According to interviews by NAR, 97% of the Gen Z population wants to own a home. With this frame of mind and improving market conditions, 2017 real estate trends should begin to reflect strong interest from Gen Z.
3. Younger Buyers Will Flock to the Midwest
As market conditions grow increasingly fragmented, with fewer small properties in the cities and a greater abundance of large homes in suburban communities, young buyers will look to the Midwest. As the Midwest offers more affordable home markets and a wealth of university towns, 2017 real estate trends will see an influx of millennials and younger buyers settling down in these more affordable home markets.
4. Home Inventory Will Remain Limited
As the home-buying population increases, the lack of affordable home inventory will remain small. Despite renewed building efforts, homes aren’t rising fast enough to accommodate inventory needs.
According to recent home research, the nation’s current stock of homes available for sale is down an average of 11% compared to previous years in the top U.S. metropolitan markets. In 2017, you can expect this low-stock real estate trend to continue, putting added pressure on real estate costs.
5. Homeowners’ Net Worth Will Continue Upward With Climbing Prices
2017 ushered in a wave of rising home costs, and in the year ahead, you can expect to see home costs continue to climb. Per a U.S. Home Price Report from CoreLogic, home prices are poised to rise another 5.2 percent through September 2017.
While rising costs may spur fear in potential buyers, existing homeowners can enjoy knowing that their net worth through home equity will continue to increase. In the past year alone, the average homeowner acquired more than $11,000 in wealth from home equity.
As prices continue to rise, 2017 real estate owners can anticipate their worth in home equity to follow suit.
6. West Coast Properties Will Attract Attention
While the west coast has seen migratory trends in recent years, particularly to tech cities such as Seattle and San Francisco, in 2017 real estate trends predict an increase of home sales in west coast metropolitan markets.
Los Angeles, Portland, and Sacramento will continue to experience swells in the home real estate markets, and those looking to buy out west should anticipate fierce market competition.
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