It’s no secret that 2016 was a tremendous year for real estate, as demand for housing and the value of housing continued to increase. The health of the housing market was largely bolstered by an increase in wages, low mortgage rates, and the fact that millennials, those supposedly irresponsible youngsters, are finally beginning to buy. Despite this recent strength, the uncertainty of the recent election is leaving some potential buyers wary of the housing market. In that case, it helps to look ahead to some possible 2017 trends to assuage any lingering buyer reluctance.
(It goes without saying that all these trends are merely possibilities, as there is no way to predict the development of the housing market with 100% certainty.)
Prices Close in on Pre-Recession Levels
One major prediction for 2017 is that home prices will close in on pre-recession levels. It may have taken years of dramatic growth to accomplish, but the housing market is closer than ever to making a full recovery and returning to the peak prices seen prior to the recession. While this might not seem like a big deal, consider the fact that the recession officially began way back in 2007, nearly ten years ago.
Housing Markets Approach Normalcy
While all the growth the housing market has been experiencing is undeniably exciting, most should recognize that unlimited unrestricted growth is not possible. That’s why most experts are expecting the housing market to begin to return to normal in 2017. Growth is still expected, of course, and no one is expecting a vastly dramatic slowdown. Instead, most industry insiders are predicting that growth will cease to be as steep as it has been in the past. Houses will still continue to appreciate in value, for instance, but their appreciation won’t continue to drastically soar. Some of this return to equilibrium has already been happening: in San Francisco, for instance, July saw home prices appreciate by about 5%, a substantial decrease from the city’s whopping 32% appreciation rate from July of 2013. If the slowdown in appreciation makes you panic, just remember that, if dramatic improvement is a good thing, then it’s even better when followed by a return to stability.
Suburban Meets Urban
However, even if prices and appreciation will achieve more stability, you can expect the housing market to continue to innovate in 2017. While it seems like most of development’s attention in recent years has focused on revitalizing once neglected urban cores, many experts say that a new development trend is slated to gain steam in the suburbs. Called “surban” living by some, this movement involves “urbanizing” suburban neighborhoods. More specifically, developing a suburban region into a “surban” one involves outfitting an area with urban amenities. Often, this process entails making it easier to commute via bicycle, public transportation, or by foot, just as one would do in a city. To make this process possible, developers are turning suburban communities into places where one can easily access work, grocery stores, and community gathering centers, such as parks, as a pedestrian. With this system, homeowners will receive all the benefits of living in an urban environment without enduring some of city-living’s drawbacks, such as traffic congestion and pollution.
Overall, experts are predicting that the housing market will continue to stabilize and innovate. In that case, 2017 is looking to be an ideal year to buy, especially since mortgage rates are still low. To purchase your home and capitalize on the upcoming 2017 trends, contact Pickett Street at (425) 502-5397 or info@pickettstreet.com.
Sources:
http://themortgagereports.com/22472/housing-market-forecast-experts-predict-2017-real-estate
http://www.marketwatch.com/story/5-real-estate-trends-to-watch-in-2017-2016-11-15