Possible Real Estate Trends for 2017


Filed under: Market Comentary


trendsAs 2017 is quickly approaching, many people might be wondering what they can expect to see in the real estate market for the upcoming year. A recent article in The Fiscal Times outlined several real estate trends the experts predict for the new year.

  • Rising Prices Will Keep Pushing Up Homeowners’ Net Worth

According to a report from CoreLogic, home prices should rise another 5.2% through September of 2017. Rising prices have doubled the amount of home equity held by Americans.

  • Understand That Mortgage Rates Are Increasing

Since the presidential election, rates for conventional loans went up nearly a quarter of a percentage point, which was the fastest increase since 2013. In addition, the Fed is expected to continue raising rates on a strong economy. So, if you are thinking about refinancing, it is a good idea to do it early in 2017.

  • It Is Getting Easier To Get A Mortgage

According to the Mortgage Credit Availability Index, it is now easier to get a mortgage than any period in the last eight years. This is due to an increased availability of jumbo loans and low down-payment loans. In addition, banks might also be willing to work with borrowers over the next few years because they want to make up for a decline in refinancing business when the interest rates increase.

  • Smaller New Homes Are In

Being the product of several trends in the real estate market, including higher demand for homes close to city centers where space is tight, smaller new homes are the “in” thing. The median square footage for new homes this year fell for the first time since the recession. According to one chief economist, smaller homes are being built because buyers just can’t afford larger homes anymore.

  • Inventory Remains Tight

Even though builders have increased production, this production is only about 60% of the normal pace. And although total housing inventory increased at the end of September, it was still 7% lower than last year.

  • For First Time Buyers, It Is Getting Easier

The market has become slightly more welcoming for firs-time buyers. Robert Dietz, chief economist for the National Association of Home Builders said, “On the supply side, builders are finding business models to provide the level of product, such as townhouses, that first-time buyers are looking for. And on the demand side, wage gains and the demographics of today’s millennials who are marrying and having kids later, will help.”

If you have any questions about anything centered on the mortgage industry, please feel free to give me a call and we can discuss whatever is on your mind.

source: http://www.thefiscaltimes.com/2016/11/22/10-Real-Estate-Trends-Watch-2017

 


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