What Can You Expect From the Market in 2017?

I get asked all the time about what I think will happen in the market. I can’t tell the future, but I can point to a few different sources to give you a better idea of what is likely to happen.

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A lot of people have been asking me lately about what they can expect from the market this year. My first response is always, “I don’t have a crystal ball, but I can tell you what I’ve been seeing in the local marketplace and what some experts think will happen in the future.” Here’s what I mean.

According to Lawrence Yun, chief economist of the National Association of Realtors, the national median home price will increase by 4% in 2017. Also, low inventory levels are affecting affordability by slowly increasing housing prices. Factors such as limited land availability, shortages on construction labor, and tight credit for buyers are all contributing to increasing home costs that create a shortage of available housing. Also, Yun is predicting a 5.3% increase in new construction home starts.

I predict a slow and steady price growth.

At the state level, Realtor.com is predicting moderate sales growth with a changing composite of buyers. A few trends they are starting to see include millennials and baby boomers being the two demographic shifts powering through in the next 10 years. They also predict a slow and steady price growth of 3.9% from last year. Fewer homes will be on the market, and inventory will decrease by about 11% on average.

We are generally seeing a lack of inventory and an increase in demand across all price points. However, I’m also seeing the days on market for listed homes increase. I’m optimistic for the outlook of the year as it starts off, but I also predict a slow and steady growth.

If you or someone you know is thinking about buying or selling a home this year or if you just have a question, don’t hesitate to give me a call or send me an email. I would love to hear from you.