The housing market can be tricky to navigate. Luckily, we are here to break it down for you. What is in store for homebuyers in 2017?
Let’s explore 5 trends shaping the 2017 housing market.
Credit is Available
For those looking to buy a home, 2017 may be your year. Looser lending standards will create more widely available mortgage credit.
The Federal Housing Administration, also known as the FHA, will be lowering its fees for first-time homebuyers, making this a prime year to purchase a first home.
Learn more about FHA loans with First Community Mortgage.
A Booming Sellers Market
The National Association of Realtors is predicting existing-home sales will reach 6 million in 2017, an increase from 5.8 million in 2016.
Homes will move on and off the market at a faster rate this year, too. Redfin is predicting that the average number of days a home is on the market to break records for 2017. In 2016, the average was just 52 days, and this year should be even shorter.
More New Homes
2017 is the year of new home construction. The housing market is booming, and new construction is fighting to keep up with the high demand for new homes.
The average rate for new groundbreaking was 1.163 million in 2016, and shows no signs of slowing down in the future. Higher demand from buyers, higher wages for construction, and looser credit for builders are sure to make for a great year in the home building business.
With more access to credit and housing, a higher number of millennials will enter the housing market, and play a significant role in increasing the home ownership rate.
Millennials, who equate to approximately 88 million, are projected to make up approximately 33% of the housing market this year according to realtor.com. Over half of first-time homebuyers for 2017 are projected to be millennials, which will bring rapid changes to the diverse housing market.
Rates will Rise
In December, the Federal Reserve raised interest rates for the second time since 2006. Some officials on the Federal Reserve board are predicting 3 more increases for 2017.
With rates on the rise, now is the time to buy a home. Current rates in the 4s are a great opportunity to purchase a new or previously constructed home.
If you are looking to lock in rate for 2017, talk with a loan originator. An increase in new construction, credit, and homes for sale create the prime opportunity to buy.
Find your loan originator today! The experienced humans at First Community Mortgage are ready to answer all of your questions, and will get you into the home of your dreams!