Realtor.com® 2017 Housing Forecast: Five National Housing Trends

The 2017 housing market will see a year of slowing, yet moderate growth according to the realtor.com® 2017 housing forecast. Next year’s predicted slowing price and sales growth, increasing interest rates and changing buyer demographics are setting the stage for these five key housing trends:
 
Millennials and boomers will dominate the market
Next year, the housing market will be in the middle of two massive demographic waves: millennials and baby boomers. These groups are expected to power demand for at least the next 10 years. The millennial market share is expected to be 33% of the buyer pool while baby boomers will make up 30% of buyers in 2017. Because boomers are less dependent on financing, this segment is anticipated to be more successful when it comes to closing.
Midwestern cities will continue to be hotbeds for millennials
Midwestern cities will continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack.
Slowing price appreciation
Looking nationally, home prices are forecast to slow to 3.9% growth year in 2017, from an estimated 4.9% in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1% point or more while 46 markets are expected to see a slowdown in price growth of 1% or more, undergoing the biggest shift to slower price appreciation.
Fewer homes on the market and fast moving markets
Inventory continues on the down turn by an average of 11% in the top 100 metros in the U.S. The conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14% – or 11 days – faster than U.S. overall
Western cities will continue to lead the nation in prices and sales
Here’s the good news for home sellers in the Western metros of the U.S.: Prices are forecast to increase 5.8% and sales are projected to increase 4.7%; much higher than the U.S. overall. These markets also dominate the ranking of the realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramento and Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo-Orem, Utah; Seattle. and Oxnard-Thousand Oaks-Ventura, Calif.)
Armed with the Realtor.com® 2017 Housing Forecast, I’m sure you can see that now is the perfect time to find your dream home in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities. Call me at 805.886.9378 or email me at Cristal@montecito-estate.com and we’ll begin your real estate search. I am also here to help homeowners sell their property using my tried and true marketing strategy. It’s also a great time to sell so be sure to contact me right away!