2017 predictions are looking strong for the US housing market. Sales and prices will continue to increase and mixed with buyer demand things look promising. With Donald Trump taking his seat in the White House American citizens are looking for a positive recovery in the business sector, this could be exactly what we see. Here is what the 2017 U.S. real estate forecast should look like:
Growth In Prices & Mortgage Rates
The year is shaping up to see a growth in house prices while mortgage rates will linger around 4.25% and higher. Although the rate of increase will be slower than past years we will see a rise of price in areas like new construction homes.
Inventory will remain crowded in 2017. Builders just can’t keep up the with current economic growth and properties for sale are flying off the shelf. This will give sellers the upper hand and continue to drive up home prices.
Hot Rental Market
If you own a home you’ve set yourself up to make an income on top of your already growing equity. The rental market proves strong, in 2015 vacancy rates were less than 5% in 75% of the United States largest cities. With a booming market and limited inventory, homeowners are in a strong position to get ahead financially by renting out their homes.
Homeowners in search of affordable housing will move into the suburban areas. Limited inventory is causing a lack of budget-friendly homes in the city forcing buyers to look elsewhere. Suburban areas are recognizing this and adding more popular amenities into existing neighborhoods. This is creating business opportunities and persuading homeowners to spend more locally.
Tiny Living Gets Bigger
It looks like tiny living is no longer just a trend of the decade. The popularity of living small and more modestly continues to escalate. Millennial buyers are now able to build and customize a home of their own with a mortgage they can actually afford. It looks like we might see even more tiny home subdivisions pop up in the coming years.