For those planning to buy or sell real estate in 2017, it’s beneficial to pay attention to the big trends that are expected to be prevalent in the New Year. With Donald Trump’s election to the White House, this year is more difficult to predict than most. However, many experts agree that home sales and prices will moderate, baby boomers and millennials will dominate the market, and mortgage rates will rise.
Abby Shemesh, founder and CEO of Amerinote Xchange, a direct mortgage note buyer specializing in mortgage and business note acquisition and mortgage loan portfolios, has released his top predictions for the housing market in 2017. Here’s what he predicts will happen in the upcoming year:
- More millennials will purchase a home in 2017. Increased interest in home buying can be attributed to more jobs for millennials, rising wages, and more millennials reaching the age when they’re thinking about marriage and children.
- As more baby boomers reach retirement age, we will see more movement toward retirement hot spots like Florida, Arizona and the Carolinas.
- Home prices will continue to rise, though at a slower rate than 2016.
- Due to rising home prices, more people will move to the suburbs, where they can enjoy city-like amenities but more affordable housing.
- If President-elect Trump sticks to his plans to deport illegal immigrants (who often work in the construction industry), then the labor shortage will increase, and the cost of new construction homes will rise.
- Mortgage rates were at a record low in 2016, but rates will increase in 2017. Rates will get higher as we move through the year.