For those who are considering buying or selling a home this year, it is beneficial to first learn everything possible about how to get the best deal. Some market trends are a bit difficult to predict at this point in the year.
Donald Trump will have a whole lot to do with possible changes to the affordable housing regulations, but there are a few aspects experts can predict… within reason. Take a quick moment to read over a short overview highlighting a few of the most recent real estate market trends for 2017.
Influx of foreign buyers
A recent influx of foreign buyers is doing a great job at driving real estate prices above the realm of reasonability for most blue collar people. Cities like New York City and Los Angeles are becoming more of a safe haven for Chinese foreigners.
Wealthy Chinese immigrants have recently been looking to protect their assets against the repressive financial policies of the Chinese government. The economical benefit of foreign property buyers is that the real estate agents are making a killing.
Interest rates will go up
For the second time in the past ten years, the Federal Reserve hiked interest rates last December. Most in the real estate community believe that there are more rises to come, making it more difficult for citizens to obtain that ever elusive “American Dream.”
Though the outlook may seem bleak, everything is not as bad as it seems. Mortgage rates are not expected to rise any higher than a little more than four percent, which is still a decent offer.
Lending standards may loosen up
Though the market will be on the rise in the pricing department, lenders are likely to loosen up on their qualification standards. The FHA is predicted to lower first-time buyer fees and government lending agencies will begin to back larger loans, making it easier for people to obtain more expensive properties.
More overall housing availability
Construction rates are on the rise. After last year’s small slump, builders are breaking ground five percent more often than last year. Real estate professionals expect this rise to continue. Builders are being paid more, credit is easier to establish for buyers, and there are more buyers due to Millennials aging.
The rise of the mid-sized city
In layman’s terms, the big cities like New York, Seattle, and San Francisco are being flooded with people looking for better paying jobs, but there just is not enough space inside the city.
People are forced to move outward, and build new housing in the suburbs. This has been happening for decades, but it has now come to the point that suburbs are becoming medium-sized cities of their own.