2017 Real Estate Outlook
As we prepare to bid farewell to 2016, it looks like we’ll be saying goodbye to the last of the record-low interest rates as well. In a short period of time, interest rates have shot up to almost 5% and according to mortgage brokers will likely be there before the end of December. Analysts expect the increase to cause a modest reduction in home sales in 2017.
The two largest American generations in history, Baby Boomers and Millennials are both approaching stages in life that are home buying motivators such as retirement, empty nesters, getting married or having children. These two generations will move the real estate market for the next 10 years.
However, with financial challenges, student loan debt and the increase in the interest rate, many first time home-buying millennials maybe pushed out of the real estate market for 2017. A recent Realtor.com study indicated that only 33% of the home buyers in 2017 will be millennials. The rest of the buying market will be the Baby Boomers which is always a win for Southwest Florida real estate.
CEO of Florida Home Realty, Greg Zorn, believes the market for 2017 will be better than 2016. “There is more inventory available this year, providing buyers with more choices. I expect increased confidence in the economy, more jobs will be created, people feeling safer and the American dollar stronger. I anticipate more housing starts, more construction and more inventory for the year. The interest rate is still low so correctly priced homes will continue to sell quickly while the median sales price will continue a gradual climb each quarter.”
Written By: Kathy Zorn