Home Buyer Predictions 2017
Home Buyer Predictions 2017 brought to you by Sally English, Associate Broker, Realty Associates of Atlanta. Sally English and the English Team specialize in homes and neighborhoods convenient to Emory University and The CDC.
Home Buyers are about to enter the most challenging buyers real estate market since 2007. Demand for housing is strong as we enter 2017 and home buyers will face stiff competition in their house hunt. Anxieties about the economy have been put aside post election and employment figures are way down. Families are more confident about about their economic future and want to improve their housing. All these factors point towards a lot of competition for buyers in the real estate market – at least for the first half of 2017.
Here are my home buyer predictions 2017:
- There will be an increase in the price of existing homes in the first half of 2017. Low market inventory in combination with increased buyer demand will result in inflation of home prices. Home prices are going up!
- Home buyers can expect mortgage rates to continue to rise in the first half of 2017. Affordability is going down!
- Housing inventory is low as of December of 2017 and pent up demand for housing will result in listings going under contract almost as soon as they hit the market in the first quarter of 2017. Housing inventory will stay low for the first quarter of 2017.
- Home buyers will have more inventory to choose from in April through June as home sellers who have been sitting on the sideline will enter the market to take advantage of increased home values.
- The housing market in the second half of 2017 is largely dependent on the economic policies of the Trump administration. If mortgage interest rates continue to rise that could dampen the housing market in the second half of 2017. The Federal Reserve Bank will continue to walk a tightrope as they try to control an overheating National economy.
- Home buyers must have a renovated home (for housing originally built in the 1960s-1980s) will have to pay top dollar for their homes. New kitchens and new baths equals paying a premium price. Home buyers may need to expand their seearch to include some houses that need renovation work,
- Millenials watching HGTV will be disappointed to learn their real estate agent can not select three great homes and then they pick one as the home they will buy. Many of the homes available for first time home buyers will not have granite countertops, stainless steel appliances and soft close cabinet drawers.
- It is going to be tough to find a good remodeling contractor in 2017. Heck it may be tough to find a handyman in 2017. Everybody will want to do some home improvement in 2017 as they have a few extra dollars in their pocket from an improving economy. Home buyers may have to take a price concession for their inspection punchlist items rather than demanding repairs from a home seller.
- If President Trump successfully reduces the capital gains tax then all H*LL will break loose on the investment side of real estate. Any home under $250,000 in my market will be subject to purchase by an investor. Home buyers in the under $300,000 price range will have a lot of competition from invesotrs paying cash for homes. Hint: Home sellers prefer cash buyers.
- Home buyers should team up with savvy real estate agents using predictive analysis to identify home sellers. Many of the best homes will never be listed in the MLS before they are bought and sold. You have to work with local agents who know your real estate market for this to strategy to work to your advantage.
Call or text Sally English, 404-229-2995 if you want to be a home seller in 2017.