April 2, 2017 fernandoybus

4 Real Estate Trends to Watch for in 2017

Real Estate Trends

As if 2016 didn’t have enough ups and downs to make the saltiest sea captain motion sick, 2017 is already poised to follow suit. With President Trump shaking things up in D.C. there is sure to be a lot of change coming in the following year.

But there are already some emerging trends that are starting to show promising opportunities for those who can find a way to capitalize on them. Here are four of the most promising potential moneymakers for real estate investors who are looking to make a significant impact this year.

1. Baby Boomers and Millennials: These two generations make up more of the living population and real estate target demographic in America right now than any other generation. And they are both about to be moving, literally speaking. Millennials will soon be looking for homes to settle down in and start their families. Conversely, as empty nesters, Boomers will be looking for homes to downsize into in their retirement. This wave is expected to run for at least a decade so even if you’re not ready to get in on the action right now, there’s time to get things in order so you can make your move and take advantage of the tremendous flux.

2. Rising Interest Rates: This past December the Federal Reserve raised rates for just the second time in a decade. There are predictions that more increases will follow throughout 2017 which will cause mortgage rates to rise. Those upticks could potentially make affording homes a bit more difficult for some, but rates are not expected to reach a point above 4.3% on a 30-year fixed rate so solid prospects are still there.

3. Mixed-used communities: Due to the influx of workers migrating to many large cities in search of higher-paying jobs, new construction has been having a hard time keeping up with demand. Because of that, medium-sized cities are seeing a rising movement of younger homebuyers viewing them as affordable living alternatives that offer similar employment opportunities.

Along with that trend, those medium-sized cities are starting to see the incorporation of apartments, single-family homes, and townhouses together within the same neighborhoods. Developers are beginning to take advantage by adding more urban-esque amenities to these communities, so residents can easily live, work, and enjoy recreational activities all within walking distances of one another.

4. More Lending: Due to somewhat looser lending standards, mortgage credit will most likely become more readily available. It is also reasonably likely that the trend of lowering fees for first-time homebuyers will continue. Additionally, 2017 will be the first year since the government bailout that Fannie Mae and Freddie Mac will begin backing substantial mortgages again, which will make it easier for high-end buyers to secure financing.

For the past several years the real estate market has endured a lack of certainty. But 2017 promises that amid the fluctuations and pronounced focus on housing lending reform, the housing market in America remains a ripe investment opportunity.

It’s time for you to be part of our team and start thinking ahead. Contact us today at [email protected]

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