What to Expect in 2017

2017 Trends

The new year is certain to bring change, to politics, the housing market and who knows what else. Since last month’s election we have seen mortgage interest rates slowly inch up, this is a trend we can expect to continue through 2017. Interest rates are expected to reach 4.5%, that is a 1% increase from 2016 averages of 3.5%.

Home prices are expected to increase 3.9% nationwide. Rising interest rates and rising home prices will likely price first time home buyers out of the market and we will see the housing market slow.

Millennial market share is expected to decrease slightly to 33% but the market will still be dominated by millennials and baby boomers with boomers expected to take up 30% of market share.

Midwestern cities such as Madison, Wisconsin and Columbus, Ohio will get the most attention from millennials due to their affordability so we can expect to see growth in the Country’s midsection.

Price appreciation forecasted to slow to 3.9% year over year down 1% from the 4.9% we expect to see this year. The inventory in anticipated to drop lower.

Cities on the West coast will continue to lead in price and sales increases with an expected 5.8% price increase and sales expected to rise 4.7%.