Realtor.com® predicts the 5 housing trends affecting the housing market in 2017
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Millennials and Baby Boomers to dominate: These two giant demographics are expected to fuel demand for at least the next decade in the housing market. Realtor.com® has lowered its prediction of the Millennial market share to 33 percent of buyers due to recent increases in mortgage rates. Baby Boomers are expected to make up 30 percent of buyers in 2017.
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Midwestern cities get more attention from Millennials: The country’s midsection is estimated to see an increase among Millennials purchasing homes in 2017 due to greater affordability in 15 of the 19 largest Midwestern markets. Realtor.com® says these metros have an average Millennial marketshare of 42 percent or higher: Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis.
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Price appreciation to slow: Home prices are forecasted to slow to a 3.9 percent year-over-year growth in 2017, down from an estimated 4.9 percent growth in 2016. According to Realtor.com® there are 26 metro markets in particular that are predicted to see prices rise 1 percent point or more with Greensboro-High Point, N.C.; Akron, Ohio; and Baltimore-Columbia-Towson, Md. expected to see the largest gains.
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Fewer homes on the market: Inventory is expected to drop even lower in 2017, offering home buyers even fewer choices. According to Realtor.com®, inventory is down an average of 11 percent in the top 100 metros.
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Western cities to lead in prices and sales: Western metros are expected to see price increases of 5.8 percent in 2017 with sales expected to rise 4.7 percent, which is higher than the anticipated averages for the rest of the country. Western cities continue to top Realtor.com®’s 2017 housing markets list, especially Los Angeles; Sacramento and Riverside, Calif.; Tucson, Ariz.; and Portland, Oregon.
