2016 will be written in the history books as _______ (We’ll let you fill in the blank). The Presidential Election, Chicago Cubs winning the World Series, 2016 Olympics, Brexit, Angelina and Brad divorcing… shall we go on? 2016, you will soon be behind us! 👋 For those of you anticipating the New Year, can you guess what real estate trends will emerge in 2017?
Hover over each of the 8 images to reveal 2017’s real estate trends:
What is trend 1 of 8?
First of all… what is surban? Good question. “Surban” communities
, basically a combination of the convenience of urban cities and the family-friendly vibe of the suburbs, give the resident the best of both worlds. “Existing suburban neighborhoods are adding urban amenities so that there’s an environment where people can live, work, and play right outside the core part of the city,
” says said Peter Burley. Surban communities will pave the way for a new way of living, where residents can walk to work and local grocery stores, enjoy parks and recreation, as well as reap the benefits of public school systems.
It is expected that nearly 80% of residential growth will occur in suburban communities over the next 10 years, compared to just 15% for urban areas. What are your thoughts? Is “surban” right for you?
What is trend 2 of 8?
The National Association of REALTORS®
(NAR) predicts that Millennials
(born between the early 1980s and the late 1990s) will be expected to purchase their first home in 2017! Are they finally off the fence? Data has shown that in 2016, 37% of buyers, under 35, said they were able to save enough for a down payment within six months, and 17% were able to save enough for a down payment within a year.
It turns out that Millennials are skipping starter homes completely and heading straight to move-up homes. It looks like they have been saving and can afford it.
What is trend 3 of 8?
When the limelight was on Millennials the past few years, we might now shift focus in 2017 to Generation Z. Surprisingly enough, the first Generation Zs
will turn 18 in 2017, getting them closer to being able to purchase homes. Unlike Millennials, “Gen Z will come of an age with low interest rates, better job prospects and higher wages to help cushion the high costs of college education,” says Jessica Lautz
of NAR. Lautz also revealed a shocking statistic:
97% of the Gen Z age group wants to own a home.
What is trend 4 of 8?
As lenders, we need to change to fit the wants and needs of the next round of home buyers. Optionality means finding multiple values in a single investment,” says James F. McClister, author of Six Emerging Real Estate Trends to Watch in 2017. For instance, developers are already doing that by allowing multifamily tenants to use their units as either a living space, a work space, or both.
How about all of those self- employed people that have been left out in the cold from mortgages the past few years?
What is trend 5 of 8?
Great news from the Mortgage Credit Availability Index
! It is now easier to get a mortgage now than any other time in the past 8 years
, also reflecting an increased availability in both jumbo and low down payment options. “The pendulum has been swinging toward a loosening of the credit box a bit,” explained Daren Bloomquist, Senior Vice President of Attom Data Solutions.
Access to credit is opening doors in more than just mortgages!
What is trend 6 of 8?
Rising home values DOUBLED
the amount of home equity held by Americans this past year. Let’s see some numbers here… In an article written by the Fiscal Times, the average homeowner gained more than $11k
in home-equity wealth last year.
After a 6.3% increase over the past year, home prices are poised to rise another 5.2% through September of 2017.
What is trend 7 of 8?
Who would have thought that designing and building a brand new home would be an affordable option? It is predicted that new home construction
still will not be able to keep up with demand, but it is definitely on the rise.
In fact, Gord Collins stated “[new construction homes] are forecast to grow strong this year and next, particularly single family homes, which will rise about 30%.”
What is trend 8 of 8?
Technology has and continues to develop new tools that allow us to be in two places at one time. Imagine sitting at home in your pajamas while viewing multiple properties for sale and their amenities. With drone technology
, real estate agents are now able to market listings to a whole new level. “Location, location location has now become perspective, perspective, perspective,” says Steve McIrvin, chief executive of Autel Robotics USA, a drone manufacturing company.
A recent study by the National Association of REALTORS® (NAR) showed that “nearly 20% of realtors who aren’t already using drones said they plan to use them in the future.” Home buyers and sellers will also be able to use drones by 2017, as operators will no longer need a commercial pilots license to fly.
Finally, a reason we can all support drones! It’s becoming easier to buy and sell your house.
What’s your favorite trend?