What Does The 2017 Real Estate Market Mean For You?
Does the 2017 real estate market look good for you as a buyer, seller, renter, or investor? Let’s take a look at some of the factors influencing the landscape this year, and what that means…
There are certainly expectations of changes in the economy and housing sector this year. Many predict it could be another strong year. So, what trends are evolving? How will they impact individuals and families who are planning their property and money moves for the year?
Factors Impacting U.S. Housing in 2017
Confidence is the one big overarching factor affecting everything this year. While not everyone is pleased with the presidential election result, it is clear that it has helped the nation get past a lot of uncertainty. The response from the business and financial sectors has been strong, with many signs of renewed confidence in the economy and the ability to operate profitably. Consumers and investors have also appeared to be reacting well, with new investments and spending. Whatever the new White House administration actually does or not, this confidence should keep driving the market for a while.
The resulting purchasing, investment, and development activity is expected to cause a domino effect of other factors which directly impact the housing market.
This includes:
- Access to credit
- Interest rates
- Property values
- Affordability
It is hoped that mortgage lenders will become a little easier to work with this year. We’ll have to wait and see. Still, the Fed has repeated that it plans several interest rate hikes this year. Zillow forecasts many cities to continue to experience rising home values, though at a slower pace than last year. The one major drawback of this activity could be affordability. That is unless there are substantial changes in taxes, jobs, and wages.
2017 for Home Sellers
This will be an interesting year for sellers. Those who are in distressed or foreclosure situations will likely find that lenders are less able and willing to help them out. That may speed up the urgency to sell. Others will find this the opportune moment to sell and move up while rates are low. Equity has risen, but there may be more gains to be found in a new home. There could be a lot of competition between sellers.
2017 for Home Buyers
The above is going to turn many cities into ‘Buyers’ Markets’. That means a new generation and rebounding generation with their credit now healed looking for properties. However, with plenty of inventory and new construction, they may enjoy more negotiating power than they’ve had in years. A lot will depend on the lenders and ability to get financing. With mortgage rates headed up for the foreseeable future, those that act fastest will secure the best house deals.
2017 for Renters
With rates still low, many renters are realizing that they are paying far more in rent than they could be for a mortgage, and actually owning their own home. At the same time some landlords have become so strict that it may also be easier to qualify for a mortgage loan versus getting approved as a tenant.
2017 for Real Estate Investors
This is shaping up to be an exciting year for real estate investors. Rising property prices mean opportunities to gain equity in rentals or flip houses. Competing sellers can mean more power in negotiating terms. Yet, end buyers and renters may be impacted by affordability and rising rates. Be sure to factor rising costs into projections.
How do you feel about the real estate market in 2017? Will you be buying, selling, renting, or investing?
DBH Homes is a real estate investment firm based in Minneapolis, MN, offering help to distressed homeowners, local home buyers, and both local and out of area property investors. Get in touch today to find out how we can help you…