Emerging Real Estate Trends in the United States: A Bird’s Eye View
The real estate market in 2016 undeniably, was unpredictable, excruciating, yet an exceptional twelve month period in the United States. It is only with the advent of 2017 that the real estate trends in the United States have fueled up like a rocket. It seems that the housing sector is all powered up to contribute a decent share to the GDP. Well, the credit goes to the wake of the real estate bubble, where they tightened the lending standards and even builders became better after surviving the crisis.
As the year commenced, the experts predicted a rise in building activities, but it seems that the builders are not willing to produce more homes. In the meanwhile, the prices of the homes escalated beyond what everyone expected.
With the start of a new year, we are here to fill you in on the emerging real estate trends in the U.S. that may help you with real estate during the year.
Millennials Move the Market
Boomers and Millennials, who are the two biggest American generations in the history of the world, will move the market.
The real estate market from this year will stay between the two colossal demographic waves, Boomers and Millennials. Expect the demand between these two groups to escalate for at least 10 next years.
It will be easier to sell houses fast in the United States this year. The expected boost in the real estate demand will be seen for a few more years. An improved supply of homes will satisfy the real estate needs of the homebuyers. Trends say that the supply will improve in this sector, but anticipating the supply in bulk may disappoint most of us. So, unlike 2016, we can see a little turnaround in the real estate market with a little bump in the housing sector this year.
Millennials will Rule
The whirling of the trends is supposed to make more Millennials, homeowners, and renters. The fact that this demographic group makes up the greatest percentage of the workforce is what has affected the real estate market. In addition, as per the trends, these Millennials will move from the coasts to inland markets, where starter homes are more reasonable.
Furious Competition Coming Up
For real estate, the competition will grow fiercer in the U.S. The sellers are going to maintain the edge over the buyers in the market.
In 2016, 53 days was the maximum Days on Market (D.O.M.) for the typical home, a week faster than in 2015. So, the real estate brokerage in 2017 will be even quicker.
Price will Rise, but Gradually
Prices will continue their climb, but slowly. Experts believe that the price increase will hold steady despite a snail’s pace growth in sales. With the high demand of real estate and low unemployment rate, there is no immediate turnaround in the price trends of the homes, except up, up, up. Nonetheless, home prices will likely outpace inflation and income yet again in many areas of the U.S. in 2017.
Affordability is surely on the way to fading this year. Wages will rise up for the big cities of the U.S. whereas the same will go down for the median earner. This trend will probably hinder many aspiring buyers to reconsider their decision of purchasing homes. The irony of the contemporary housing market is that the locations and cities where wage growth is expected are those where most of the population can’t afford to purchase homes. Quite a gigantic mismatch, isn’t it?
Real Estate trends in the United States, thus, seem to be a mix of some highs and some lows for people. While the major market is surrounding the Millennials and Boomers on one side, still others are still struggling to afford their first home.
It seems there is going to be a big whirl in the real estate market this year. Be ready for the change!
All the Best!