2017 Real Estate Trends
Post-election concerns have left many asking questions about the 2017 real estate market. While some predict a strong economy and a healthy real estate market, others are concerned about possible interest rate hikes, and inflation issues. According to the 2017 Housing Forecast provided by realtor.com, the Phoenix-metro area is ranked number one with a projected increase of home values by 5.94 percent and a sales growth at 7.24 percent.
Will Interest Rates Go Up? President-elect Trump has not been shy about his intentions to increase interest rates, and we are already seeing that trend happening in the mortgage industry. However, higher interest rates have the potential to reduce stringent lending regulations, which could result in more credit opportunities for qualified homebuyers. It is hard to predict when the Federal Reserve will pull the trigger, and there has been speculation throughout 2016 that an increase is in fact on the horizon – but how much is yet to be seen.
Millennials Finally Commit: Millennials have replaced the baby boomers, and are now considered the largest generation in the U.S. and they are ready to buy a home. With improvements in the economy, and more employment opportunities, the millennial generation is in a better position financially to own a home—and they are finally ready to commit to homeownership. It is predicted that this group of first-time home buyers will lead the housing demand in 2017.
To Move or Not to Move, That is the Question: One trend that has contributed to the lack of available homes for sale, we will continue to see in 2017 – and that is whether or not current homeowners decide to buy up or remodel their existing property. If interest rates do in fact go up, we may see even more homeowners hanging on to their low interest rates and choosing cash in their equity to remodel instead of moving.
As with any market, we do not have a crystal ball however, we do know that owning a home is a rewarding experience both emotionally and financially. If you or someone you know is interested in learning more about buying or selling a home in the west valley, please give The Bourland Team a call today! We have the local experience that will help you make a smart, and informed decision.
The Bourland Group