What You Need to Know About the 2017 Housing Market

As the US economy continues to grow, so does the housing market. While the housing market is nowhere near sales prior to 2008, rising demand is a positive sign for sellers. Many people are looking to buy but the market is tight. As we look towards summer 2017, these are the housing trends that are emerging with force.

The Housing Market is “Hot”

There is nowhere for the housing market to go but up. 2017 has shown to be the most profitable time to be a home seller in years. According to Redfin, median home sale prices are expected to gain 5.5% in 2017 compared to 2016. Prices and sales are slowly but surely rising. This is due to increased incomes, more jobs, inflation and homebuyer demand being stronger than recent years.

Demand is High but Builders are Cautious

There is demand in the market for new homes but builders are hesitant due to inventory shortage and a lack of construction workers following the recent election. While the National Association of Home Builders reported that total building starts decreased back in September and November, the number has continued to grow since, reaching 1.242 million at the start of 2017. Homebuilders are being encouraged by higher wages and increased demand from buyers.

Suburban and Metropolitan Growth

Suburban communities around major cities are developing with haste. According to Emerging Trends in Real Estate® by PWC and Urban Land Institute, “From 2000 to 2015 suburban areas accounted for 91 percent of population growth and 84 percent of household growth in the top 50 U.S. metro areas.” As Millennials progress from renters to homeowners, suburban and metro areas will see an increase in demand from potential buyers.