What Realtors Need to Know about Real Estate in 2017

Written by  //  2017/01/22  //  Real Estate Agents  //  No comments

The bad days of the mortgage crisis are now in the past, and the foreclosed properties that once glutted the market in the late 2000s have been essentially absorbed. Most experts feel that the housing market has completely recovered from that dismal period, and home values will continue to rise steadily.

The year 2017 is expected to provide a number of new conditions that will draw first-time homebuyers to the market, as well as encourage older homeowners to consider the move to downsizing their housing. You will have a varied inventory on hand to serve a range of demographic groups. Here are some things you should know for real estate work this year.

Suburban Locations with Urban Amenities

One new trend that is grabbing the attention of both realtors and prospective buyers is suburban communities that offer a number of amenities associated with urban living. Tagged as “suburban” living, these towns provide city centers so people can walk to work, shop, dine and enjoy parks and entertainment outside of the central city limits and close to their own homes.

A number of these communities already exist around the country, and more are expected to arise as local communities recognize the value of attracting employment and entertainment venues, both as a tax base and as a draw for new residents. For homebuyers who want a slower pace and less congestion than the city, but still want to enjoy many of the amenities available there, the suburban community offers the perfect option. You may find yourself managing a number of bidding wars for desirable properties in these communities.

Young Couples Purchasing Larger Homes

Another trend that will loom larger in 2017 is the desire for millennials to buy their larger home instead of first purchasing a “starter” house. These young people have delayed their purchase for a number of years and have accumulated larger down payments to put toward their homes. They are likely to see the advantage of buying the larger property at today’s low interest rates, rather than wait for a later time when a trade-up is more pressing, but interest rates are higher.

Rising Interest Rates Causing Greater Demand

Mortgage rates remained low during the late 2000s, but were offset by low wages, a struggling job market and tight credit. In late 2016, the Federal Reserve Board made the decision to raise interest rates, and this action may signal a period of continued interest hikes that will affect homebuyers. If buyers have been waiting for a better time, they may feel that now is the time to take action before the rising interest rates make a home mortgage unaffordable. You will have to work hard to keep up with the demand for inventory. You might look into real estate training programs like Success Path to learn more about this.

Looser Credit

The years from 2008 to 2012 saw tightening of the requirements for a home mortgage. In many cases, couples were unable to get the loan they needed for their first homes. Loosening credit requirements will allow you to make more sales than you have in past years.

More New Construction

Keeping up with housing for a growing population has been a problem in recent years. New construction has been an on-again, off-again affair after the problems of mortgage crisis and recession. Lagging wages and an uncertain economy have put a hold on developers’ plans to build in areas of the country that are seeing population growth.

However, rising employment numbers, wage growth and easier credit is expected to fuel many new construction projects. Young buyers will be out in full force looking for housing in which to start families. But you should also keep a good supply of condominiums and townhomes for the retirees looking to downsize.

Homebuyers could see a number of opportunities in the coming year, and sellers could profit from the general improvement in the American economy, along with a more favorable lending climate. These conditions will keep realtors busy in the months ahead, and they should be ready for a fast-paced season of buying as soon as the weather warms.

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