2017 Home Selling Trends

overheadMoving season is back and the market is already showing signs of activity.  If you’re thinking about moving this summer, what kind of market are you likely to find? Rebecca Lake with SmartAssethas a look at five trends that could affect the market across the US this year. You can see the original article here.

  1. Home Prices May Stabilize

Home prices have been on a steady incline in recent years. But that momentum may begin to slow down in 2017. Since the Federal Reserve raised interest rates for the first time in a year, that could have a stabilizing effect on home prices. The National Association of Realtors estimates that price growth will slow to 3.9%, down from 4.9% in 2016.

For sellers, that may lead to a shrinking profit margin in previously hot local markets. Buyers, on the other hand, may be better positioned to snag a deal on a home in areas where prices have recently skyrocketed.

  1. Demand for Housing Could Heat Up

According to the National Association of Realtors, we could see an uptick in the demand for properties in 2017. Specifically, the NAR is predicting that existing home sales will top 6 million in 2017, which is similar to forecasts from the Mortgage Bankers’ Association, Fannie Mae and Freddie Mac.

The increased push for housing may be driven in part by a growing number of millennials who are venturing into homeownership for the first time. In addition to purchasing single-family homes, younger buyers may buy condos as well.

  1. More Millennial Buyers May Head to the Suburbs

While big cities are still popular among young adults, many Millennials are interested in living in suburban areas. Research shows that 47% of millennial homeowners have opted to buy houses in the suburbs, largely due to the lower cost of living that it entails. The amenities that many suburban areas offer are also appealing, even if it means that homeowners have a longer commute.

This trend could be good news for suburban homeowners who are planning to put their homes on the market in 2017. For buyers, the primary advantage of choosing the suburbs over the city is the ability to stretch their budgets. For example, $325,000 may buy you a three-bedroom home in the ‘burbs versus a one-bedroom studio in the city.

  1. Homeowners Could See Their Equity Rise

While the National Association of Realtors is projecting a slowdown in home prices, other housing industry experts are taking a different stance. CoreLogic, for example, is forecasting a price increase of 5.2% through September 2017. If home prices increase at that rate or close to it, some homeowners could see their home equity rise.

Having more equity in your home is a plus if you’re hoping to sell your home or refinance. The more equity you’ve built up in your property, the more you stand to make if you decide to sell your house. If you’re refinancing to pull equity out of your home for a major renovation, a higher equity value will give you more borrowing power.

  1. Supply May Shrink in Some Cities

Despite rising demand, available housing may be sluggish in certain markets. According to the National Association of Realtors, the number of available properties declined by 4.2% between 2015 and May 2016. Currently, inventory is down by an average of 11% (year over year) in the top 100 major metro markets. That’s not expected to change much in 2017, which means buyers could face more competition as they attempt to purchase homes.

Final Word

Whether you’re preparing to purchase a new home or sell an old house in the new year, it’s important to know how housing trends could affect you. Keeping your finger on the pulse of the market can help you avoid being left out in the cold by rising interest rates or a widening gap between supply and demand.

If you’re ready to jump in, give me a call at 918-809-5199. I can help you sell the house you’re in and find a better one for you and your family. Let’s gat started!

 

Advertisements

About bertwilliamshomes

Bert Williams has been a Tulsa/Broken Arrow resident since 1989 and was in the broadcast television equipment brokerage business for 14 years and in advertising and marketing for over 30 years. Bert joined the rapidly growing Chinowth and Cohen Real Estate team in 2005 when there were only 45 associates. Now with over 350 associates and eight offices across the Tulsa/Broken Arrow/Owasso/Bixby/Sand Springs/Bartlesville/Grand Lake areas, Bert has the support and resources through the C&C team to find the perfect home for you and at the same time find the perfect family to purchase the home you own now. In 2013, Bert became a full time Real Estate agent working from the Broken Arrow office. His experience with negotiations and with the Real Estate market dating back to 2005 give you a great advantage when you decide to buy or sell a home. Call me at 918-809-5199. I look forward to meeting you!
This entry was posted in Buying a Home, Selling a Home and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s