The real estate market is dynamic and is in a constant state of change. 2017 will bring a number of changes which will benefit those who are prepared for them and punish those who are not. Here are some things to expect for this year.
Millennials And Baby Boomers Will Dominate The Market
For 2017 the real estate market will favor these two groups, as they are reaching an age where they must make important real estate decisions. For Millennials this will be the year when many of them will purchase their very first house, while baby boomers will either be looking to downsize or to relocate to a more favorable destination for their retirement.
Reduced Inventory of Properties
Research shows that the inventory of properties which are available for sell in the U.S. will actually fall in 2017 by approximately eleven percent. However, the time in which it takes for a property to sell is also projected to move a lot faster than in previous years. Selling a house in the U.S. in 2017 will take about 70 days on average.
Housing Prices Will Increase In The West
Most of the U.S. population lives in the eastern part of the country, but many Americans have been moving out West due to its lower population density, and in the case of California its Mediterranean climate. This has resulted in greater demand for homes which has led to higher prices. Research shows that in the western United States properties are expected to increase by about 6 percent in 2017.
Houses In The Midwest Will Increase In Popularity
Due to the high price of homes in the eastern and western United States, many millennials will instead choose to buy houses in the Midwest. Many of the homes within this area are much more affordable than properties on the east or western seaboards, in many cases costing tens of thousands of dollars less. Thanks to the power of the internet and mobile computing a growing number of people, particularly Millennials are no longer restricted to living in one area because of a job and can relocate and work remotely.
Price Appreciation Will Fall
High price appreciation has remained the standard for many years, and will continue to be this way in many markets throughout the U.S. in 2017. However, research shows that price appreciation is finally beginning to slow, and that this phenomenon will continue into this year. If the inventory of available homes remains as is, high price appreciation will continue, but otherwise we will see a decline.
Understanding these changes is essential for anyone who is thinking of buying a home this year. They are also important for those who want to acquire investment real estate. Acquiring properties in areas with stable employment or where large influxes of people are moving into the area provide a number of lucrative business opportunities. For those who want to buy a home for their families these changes give them some ideas as where they should look.