According to real estate brokerage Redfin, 2017 may be the fastest real estate market ever. They report that home price growth will hold steady throughout next year and homes will begin selling even more rapidly than in 2016.
“Next year, the new administration will lead a shifting U.S. economy,” said Redfin chief economist Nela Richardson. “Baby boomers will become less economically relevant as millennials continue to come of home-buying age. Superstar cities will create much of the job growth, pushing wages in those cities up. Yet the percentage of homes in America’s largest cities that are affordable on the median income has declined the past two years and will continue to fall in 2017. Sales would be even stronger if there were more starter homes on the market to meet demand from millennial homebuyers. We expect to see more homes built in second-tier cities and more millennial homebuyers moving from the coasts to smaller and inland markets where they can find affordable starter homes.”
Redfin’s Seven Housing Predictions for 2017:
- The housing market will continue to grow, but at a slower pace due to affordability pressures.
- 2017 will be the fastest real estate market on record.
- New construction growth will slow.
- Mortgage rates will increase, but not by much.
- More people will have access to home loans.
- Millennials will move to second-tier cities.
- Real estate commissions will continue to fall.