Top 4 Real Estate Predictions for 2017 

Now that the holidays are over and the New Year is here, there are many people who will be ready to make a change in their housing, whether that is a new home, a bigger home or downsizing for retirement. But what can we expect to see in the upcoming year? Here are the top 4 real estate predictions for 2017:

  1. Rise in Interest Rates: it’s no secret that President-Elect Trump has plans to increase the home loan interest rates this coming year, and we have already seen some changes since the election in November. Industry experts put our concerns at ease – although we will see a rise in interest rates, it is mostly likely only going to be a slight increase and experts predict we will see rates around five percent by the fourth quarter of 2017.
  2. More First-Time Homebuyers: The Millennial generation have now surpassed the baby boomers as the largest of first-time homebuyers, and this group of people are ready to leave the nest and commit to owning a home. With improvements in the economy, Millennials are in a better position financially – it is predicted that this group of first-time homebuyers will lead the housing demand in 2017.
  3. More Loan Options: while no one wants to see interest rates go up, this could mean good news for loan options. Higher interest rates and a change in government administration could mean a reduction in stringent lending regulations creating more credit opportunities for qualified homebuyers and more creating financing options for those who may need a little help.
  4. Inventory Shortage: a shortage in available housing has been an issue in the Phoenix market for several years. When the market crashed new home builders stopped building and with the demand of first-time home buyers on the rise, we need more inventory. Good news, though with the improvements in the economy we have seen more home buyers development land across the valley. New home construction is great news for home buyers.

According to the 2017 Housing Forecast provided by realtor.com, the Phoenix-metro area is ranked number one with a projected increase of home values by 5.94 percent and a sales growth at 7.24 percent. If you are considering a move, 2017 might be the year you finally commit. We are anticipating the best year for the housing market that we’ve seen in the last decade. Let The Regal Team help you take advantage of the opportunity to make you American Dream come true! Melissa

The Regal Team of RE/MAX Professionals
7111 W Bell Road, Suite 101
Glendale, AZ 85308
(623) 229-0154
www.theregalteam.com

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