Welcome to 2017!

Trends are trends and always will be, but we wanted to give you a quick look into what we have seen coming up for 2017!

CBS Money Watch gave us some tips that aligned with a couple of other sources on what to expect in 2017 Real Estate Trend.

Here’s the skinny:

Millennials Will Be Your Buyers:

As far as the housing market is concerned, we are looking at the millennials headed in for their first-home purchases. But they aren’t looking for the temporary home, this is a bougie (desiring up-scale) group of young adults, who are typically waiting a little longer to get married/ have children, so this first home has a lot of stipulations attached to its purchase.

 Housing Values will Increase – Slower:

While the housing market has been in recovery for quite some time, the value of homes is still on the rise, but it is predicted to slow a bit. According to CBS Money Watch, last year’s growth was a 4.8% value increase while 2017 is showing an expected 3.6% value increase. Please also note that our government will likely undergo changes in light of the recent election and the market absolutely has the potential to reflect those factors – we may not see much this year, but it is never bad to be mindful!

Suburbs are Affordable:

While the cities are extremely desirable places to live, it has become more expensive to live in the city than to look out in the suburbs – it is just more affordable. We also read recently that suburbs are taking on a bit of a new phase as they are reflecting these mildly self-sufficient nucleus which often include other desirable amenities – we immediately thought of West Clay in Carmel, Indiana. This place has a town hall, numerous pools and club-houses, not to mention there are shops, a dentistry, and a handful other conveniences within the sphere of this extensive housing development.

Building A New Home will Be More Expensive:

Due to the construction industry’s labor shortage the cost of building a new home is going to be a bit more expensive – competitive costs of labor, will mean that the weight of those costs will be bore by the consumer. This is where the decisions of the new President Elect will have an effect on our markets going forward – here we go!

Midwest Cities & Millennials:

Apparently there may be an influx of millennials moving to the following Midwest cities, according to Realtor.com; Madison Wisconsin; Columbus, OH; Omaha, Nebraska; Des Moines, Iowa; and Minneapolis, Minnesota. These cities are located near major higher education institutions and offer easy transition into well-paying jobs and housing.

The West-Coast is not Getting Cheaper:

However, as stated by CBS Money Watch’s article, “population growth will follow job growth.” This trend doesn’t need much clarity – it’s expensive to move out there, but job growth will still draw folks out to the West Coast.

City Infrastructure Development (Smaller Homes):

Affordable housing in cities is always a point of contention – but consider how it is being addressed in many markets: smaller housing = more affordable housing. We are seeing smaller housing going up to confront the issue and provide options for those who live in the cities.

Affordable Rent Options:

This one is a bit two fold. While experts predict that rental rates will rise only 1.5%, more multi-family rentals are being built and in addition to this, renters are settling in with roommates to alleviate the cost-of-living.

Mortgage Rates will Rise Again:

As our economy has continued to pick back up through the years, the housing market has followed suit – however, according to CBS Money Watch, we will see the mortgage rates begin to increase as the Federal Reserve indicates increases in its benchmark rates.

Now, we know this doesn’t necessarily have a direct correlation to chimney or masonry work, per se, but we have sought to bring you the foreseeable trends for the upcoming year, regarding the Real Estate industry, so that you are best prepared to know who to go to for what, when. Prior to selling or buying a Sweep & Camera Inspection is never a bad idea, and could prevent you from looking quite un-ideal as the agent, in whom your client’s trust is found.

Seeing these trends will hopefully get you in a position to ensure your ducks are in a row, making you more agile for the changing market.