One of the latest 2017 housing predictions comes from realtor.com. It gives a macro take while sprinkling some metro-level texture (including the hottest region for millennials right now and where prices will continue to climb the most) into the company’s demographic, market movement and economic expectations.
Realtor.com anticipates a slowdown period compared to the last two years, based on “the majority of economic indicators.” A moderate national market with dampened price appreciation.
Specifically, the company expects:
-Home prices to increase 3.9 percent (compared to 4.6 percent in 2016)
-Existing-home sales to grow 1.9 percent to 5.46 million homes
-Interest rates to reach 4.5 percent driven by “higher expectations for inflationary pressure”
-The homeownership rate to stabilize at 63.5 percent after 2016’s 63.9 percent low
-New-home sales to grow 10 percent
-New-home starts to increase 3 percent
However, the wild West Coast will continue to be a real estate hotspot with leading prices and sales.
Metros in this region are forecast to experience a 5.8 percent uptick in prices and 4.7 percent rise in sales, with top markets such as Los Angeles, Sacramento and Riverside, California; along with Portland Oregon; and Tucson, Arizona; leading the way.
Experts predict 2017’s top 10 metros, noting “despite a more moderate housing market overall … strong local economies and population growth will continue to fuel the nation’s top markets.”
Source: Realtor.com