Welcome 2017. We’re approaching the new year with just two months away. Let’s welcome 2017 with a little more understanding of what this year beholds for the real estate market. After a thorough analysis, here are the 2017 real estate market trends that you should expect.
1. A recession ahead?
Let’s get the pessimistic news out of the way first…the real estate market trend might seem a little pessimistic by predicting recession time ahead in 2017. From interest rates to volatility in the equity market–all are creating some anxiety in the real estate market. In reality, two out of the past four recessions were due to a decrease in the real estate market.
But this real estate market trend shows a light at the end of the tunnel coming out of the pessimism. According to Mitch Roschelle, a partner at PricewaterhouseCoopers (PwC), it is like the real estate market is saying “if we don’t reinflate a bubble with housing prices and we don’t reinflate a bubble with commercial real estate prices, we may not have that bubble bursting causing another recession. So if there is a recession, real estate folks are saying, ‘It’s not going to be because of us this time.’”
2. Foreign interest in U.S real estate market to increase.
While domestic interest in the U.S real estate market might weaken, the foreign interest is strengthening. This real estate market trend shows that due to global uncertainty, foreign investors will be expected to turn even more into the U.S real estate market. There’s quite a lot of geopolitical risks in foreign markets, which causes foreign investors to turn to U.S dollar based investments like the real estate market.
Related Article: 4 Real Estate Market Trends in 2016 You Haven’t Read About
3. U.S. housing starts will rise.
Housing starts are the number of houses put under construction. It was previously predicted that housing supply won’t be able to keep up with the demand. Yet, this real estate market trend shows us that the number of housing starts and sales will rise significantly. This is true especially for single family homes.
This rise is mostly due to do generation Y. There’s been a homeownership put-off for years and is now coming into their key buying years until the next few years. This means that the number of renters will decrease as the number of homeowners increase.
Don’t feel discouraged though, keep reading to reach a word of advice from our experts.
4. Seattle, Washington, and Portland are among the best cities for real estate investing.
We have some advice for you on where to invest in 2017. The real estate market trend for 2017 according to Eric Fox, Vice President of Vero Forecast, shows that “the top forecast market is Seattle, Washington at 11.2%, followed by Portland, Oregon at 11.1% and Denver, Colorado at 9.9%.” These will be great places to invest in. Search these cities on Mashvisor to find the best neighborhoods and properties for you.
Related article: What’s up with Seattle Real Estate Investing?
With that being said, we must warn you from taking caution in investing from certain markets. According to Fox, “The worst performing market is Kingston, New York with 2.5% depreciation, followed by Ocean City, New Jersey at -2.1%, Kingsport, Tennessee at -1.9% and Atlantic City, New Jersey and San Angelo, Texas tied at -1.4%”
Related Article: 6 Reasons to Invest in Denver Real Estate
5. Property prices may increase.
Prices are still significantly below the pre-recession highs prices. This real estate market trend shows that the properties prices might increase to an all time high if the rate of housing construction continues to moderate.
In the long run, these will cause more people to become renters again, rather than homeowners. But, don’t waste time now. Purchase your next property now before prices do increase. Mashvisor can help you find your next property easily.
6. Mortgage rates shall remain low.
Good news for you. According to this real estate market trend, mortgage rates will still remain low. This is mainly to balance the increase in home prices as stated in the previous real estate market trend by encouraging more individuals to purchase properties.
What to make of all those real estate market trends?
We just threw a bunch of real estate market trends on you, what should you make of all this? We’re seeing some pessimistic news, such as the fact that we might be facing a recession period, or that home prices shall rise. Despite such real estate market trends, we recommend looking on the bright side. There’s still a lot of potential in real estate investing. Mortgages will be low, and there are some great cities you can invest in such as Seattle and Colorado. If you’ve already been thinking and looking into being a real estate investor, or if you’re already a real estate investor, then these real estate market trends should encourage you to purchase your next property now as we’re approaching the winter season.
Related Article: The Best Time for Buying Real Estate Investment Properties
However, if you’re new to this, continue to assess your assets and be strategic. We recommend assessing your assets and examining on where the best location can be for your real estate investment property. Know that Mashvisor will always help in analyzing real estate investment properties in just a few minutes. So, you have the right resources. Start looking now!