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. (1) 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%. (2)
Home sales are expected to increase
Existing home sales are expected to reach 6 million, up from 5.8 million in 2016 (3)
Projections for total single family home sales for 2017 (4)
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
Millennial's are expected to strengthen home and condo sales into 2020 (3). Sales by first-time buyers reached a four-year high in September at 34% (3).
Housing appreciation is up
Most markets report an increase in home appreciation, with the increases hitting near 10% in the hottest markets, which have growing populations and tight supply (5).
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
Rental affordability is one of the biggest factors for first-time buyers deciding to buy (1).
The housing market in 2017 is expected to be fueled by high demand for new construction.