What does the future hold for the housing market in 2017?

Experts have weighed in and one thing is for sure, the housing market is set to heat up this year!!


PRICES ARE ALMOST AT PRE-RECESSION HIGHS

Nationally, the market is expected to normalize with healthy sales and moderate price growth. However, some experts predict modest price declines because wages aren't keeping up  with home prices. The median home price has increased 43% from 2010, while wages have only increased 5%.

HOME SALES ARE EXPECTED TO INCREASE

Existing home sales are expected to reach 6 millionup from 5.8 million in 2016.

Projections for total single family homes for 2017: 

  • National Association of Realtors - 6 million
  • Fannie Mae - 6.2 million
  • Freddie Mac - 6.2 million
  • Mortgage Bankers Association - 6.5 million

MAKE WAY FOR FIRST-TIME BUYERS

Millennials are expected to strengthen home and condo sales into 2020. Sales by first-time buyers reached a four-year high in September at 34%.

THE HOUSING APPRECIATION IS UP

Most markets report a increase in Home Appreciation,with the increases hitting near 10% in the hottest markets, which have growing populations and tight supply.

Top 3 markets for Home Appreciation

  • Seattle, WA (up 11.2%)
  • Portland, OR (up 11.1%)
  • Denver, CO (up 9.9%)

RENT WILL KEEP GETTING HIGHER AND HIGHER

Rent affordability is one of the biggest factors for first-time buyers deciding to buy.

THE HOUSING MARKET IN 2017 IS EXPECTED TO BE FUELED BY HIGH DEMAND FOR NEW CONSTRUCTION



Sources: 

  1. The Mortgage Reports
  2. Dun & Bradstreet
  3. NAR
  4. Keeping Current Matters
  5. REALTOR Magazine
  6. BusinessWIRE