What will the housing market be like this year?
This is a question we hear from our clients all of the time. Although we don’t have a real estate “crystal ball,” we do read a lot of articles about what the experts are predicting in 2017 because we always want to be prepared for our valued clients. Generally, these experts are right a lot more often than they are wrong.
So, what do they see for 2017?
1. Home prices will continue to increase.
While experts may disagree with the amount of increase, most national experts agree that home prices will rise in 2017, which means that real estate will continue to be a great investment. Even if home values increase by only 3% in 2017, which is at the low end of most experts’ predictions, real estate will continue to be one of the highest returns/lowest risk investments available this year.
2. Mortgage rates may be a little more volatile, but will continue to remain low.
The last few years, mortgage rates have remained near historical lows. In 2017, though, rates may increase slightly, according to a few experts, into the mid 4% range, at some point. Even if rates increase slightly, they will continue to be among the lowest in history for home buyers, meaning that people will be able to afford “more home” because they will continue to pay fewer dollars in interest each month.
3. Credit availability may improve.
Banking regulation changes in recent years made it much more difficult for some to qualify for home loans. Many in Congress, and even the President, seem to want to provide more flexibility to lending institutions, which may make it easier for some home buyers to be approved for loans. So, if you were denied a home loan previously, you may be approved for a loan in 2017!
4. Demand may outpace supply, which will result in quicker sales.
Many experts are predicting that the demand for homes will outpace the supply available, which will result in quicker sales. In 2016 the typical home was on the market only about seven weeks, that's about a week shorter than in 2015. Many experts predict that this downward trend will continue, which means that 2017 may be a great year for homeowners to sell their homes even more quickly.
5. More millennials will become homeowners.
The majority of the workforce is now comprised of those born after 1980, which means that more millennials will become homeowners in 2017. Some experts also predict more millennials will move from the coasts, where housing costs are very high, to the interior of the country, where they will be able to afford housing much more easily. This may be great for states like West Virginia, who are relatively close to the coast and where the cost of living and homes have always been affordable.
What will the housing market be like in 2017? We can never be absolutely certain, but it looks as though this year will be another great year to buy or sell a home, with continued low rates and perhaps even improved credit availability. Even if you couldn’t qualify for a loan the last few years, you may be able to qualify in 2017.
We’ve cited a few facts and figures in this article, but you’re never just a number or statistic to Landmark Realty Services. As a family-owned business, we treat clients like family and provide personalized attention to help you sell your home quickly or to purchase the perfect home for your family.
Call us today at 304-842-5298 to experience the Landmark difference!!