•  A smart pig on a stack of books
  • A look at the projected housing trends for 2017

    Whether you’re in the market for a new home this year, or you’re looking to sell, you should be informed about this year’s forecast. Make sure you know about the predictions for 2017’s housing market.

    Be informed about housing trends

    • More millennials are buying and renting homes. They are now the largest generation with the largest share of the workforce, and they're making enough money to enter the housing market. Because rates are so high on the coast, many of them will move inland to cut down on costs [1].
    • Just over 40 percent of Americans are choosing to rent rather than buy homes [2]. Builders are finally starting to catch up in the demand for apartment complexes, so the increase in rent prices has started to level out. Trending similarly to 2016, the price rate will increase 1.7 percent in large metro areas in 2017, as predicted by Zillow [3].
    • Mortgage rates have been relatively consistent in recent years, but you can expect a slight increase in 2017. Rates could increase nearly 2 percent by the end of the year [3]. If you're considering refinancing your home, you may want to do so earlier in the year.
    • Recently, there has been an upward trend in purchasing houses fully in cash. The rate fell below 30 percent last year for the first time since 2007. Over the next few years, it will drop back down to around 25 percent, the normal rate [3]. All-cash buyers usually have a competitive advantage, so the decline is good news those who can't manage an in-full purchase.
    • Supply of inventory will increase, but not drastically. Builders have finally sped up their pace, but it's still only at 60 percent of their normal rate [3].
    • Sellers maintain an advantage over buyers. Houses stayed on the market for an average of 52 days in 2016, the shortest amount of time ever. We can expect to see that time frame get even shorter in 2017 [1]. The market is competitive and homeowners will have their choice of buyers.
    • Because the buying market is so competitive, home prices will continue to rise in 2017, but not as rapidly as last year. The average price rose about 6.3 percent in 2016 and will rise 5.2 percent by the end of this year [3].

    The trends of the housing market can be a little difficult to predict. It's important that you do your research before you make any big decisions like buying or selling a home. Stop by a Central Bank location to talk with a lending specialist or to learn more about your financial options.

    [1] Housing Outlook 2017: 8 Predictions from the Experts, Forbes
    [2] The Steady Rise of Renting, CityLab
    [3] 10 Real Estate Trends to Watch in 2017, The Fiscal Times

  • The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.