When it comes to the housing market, the recent appointment of president-elect Donald Trump has ushered in a wave of trepidation, with higher rates right up front. Although this factor is predicted to make a significant impact over the next year, analysts have predicted the following trends.
1. Stronger Sales: For a number of reasons, sales are predicted to increase each year until 2024, averaging 6 to 6.5 million for existing properties and 160,000 new homes. Some put the onus on more Generation Y buyers getting established and others plot this increasing line with 800,000 potential jobs being added to our economy. Additionally, more buying power may convert current renters into future homeowners over the next 12 months.
2. Higher Prices in Coastal Markets: Prices in urban markets on both coasts are expected to grow 10 percent or more. However, these markets have been experiencing a smaller supply of properties as a result of greater demand. In response, expect to pay more for smaller homes.
3. More Construction: More on the commercial end, but spilling over into residential communities, construction could see a surge over the next year to keep up with demand. Particularly, Trump’s history and emphasis on keeping businesses in the U.S. may spur more demand for commercial facilities.
4. Lower Rates: Will rates continue to climb? So far, 2016 has been known for its historically low interest rates. A surge at the end of the year brought the amount for a 30-year, fixed-rate mortgage closer to four percent. Right now, analysts believe that rates will reach a plateau and remain at a normal level through 2017.
5. Smaller Amount of High-Priced Inventory: Along with sharper price disparities between the coasts and everywhere else, market shifts are expected to make expensive, luxury properties even more exclusive. These effects will essentially trickle down; expect to ultimately pay more for less property.
6. Making Suburban Communities More “Livable”: What’s been pulling buyers away from the suburbs? Many who’ve lived out there at one point or another cite the longer commute, lack of amenities and entertainment close to home, and absence of walkability. In response, communities once reserved for McMansion-type homes have reconsidered their design, offering more sidewalks, attempting to attract businesses, and considering nightlife within their overall plan.
If you’re looking for a suburban community, turn your search to By Carrier’s energy-smart homes in a range of sizes. To learn more, contact us today.