The real estate market was fairly steady throughout 2016. However, this year may shape up to be a breakthrough year for the housing market. Lets look at some upcoming trends for 2017.
Rising Rates
It appears that mortgage rates are starting to climb after being down for years following the market crash. 2017 is projected to be a benchmark year for rising housing rates and typically this means buyers coming out of the woodwork to try and lock in the low rates while they still can. Thus far, rates have rose about 40 basis points and the Federal Government has just announced an increase so it’s wise to expect continued rises throughout the year.
Increased construction
2017 is also slated to see rises in construction rates. The average annual rate for new groundbreaking was up 5% from 1.108 million in 2015 to 1.163 million in 2016 and has no signs of slowing. Also expect to see increased demand from buyers and higher wages and loser credit for builders.
Medium sized cities
While major coastal markets are being flooded with young people, the high demand geographic restraints and governmental regulations have lead to sky-high property values and costs of living. As a result many millennial are choosing to buy property in mid-sized cities where they can find cheaper rents and property costs. Cities like Raleigh, Fort Collins and Nashville are likely to see continued growth through 2017.
Foreign Buyers
One trend that will likely continue through 2017 is foreign investment, particularly in major U.S and European cities. Foreign investors, particularly from Asia are seeking safe places away from their native countries to store their wealth and cities like New York and Paris assure them that they will receive a handsome return on investment.
Mixed-use housing
Families looking for the accessibility of city living combined with the comfort of suburban living have been investing in “mixed-use” or “surban living.” These developments, which give young families the luxury of walking the kids to school or to the grocery store, are likely to continue to sprout up around the urban core of cities throughout 2017
New Technology
Like all industries real estate is becoming increasingly dependent on technology with new applications revolutionizing the way brokers, property managers, and developers do business. Cloud-based technologies allow professionals to collaborate on projects and boost productivity by saving time and cost. Stakeholders and manager can now view updated status and firms can now keep track of buyer data in real time. 2017 should be an exciting year for real estate technology.
