With the new year right around the corner, now is the time to start planning for what we hope to accomplish in 2017. Overall, the real estate market is ending 2016 in a very strong place, and we look for that strength to continue into the new year. But there are also a number of trends on the horizon that we are going to want to pay particularly close attention to in the coming months.
Whether or not these trends impact you directly, they are certainly going to be impacting your business over the course of the next year. Being aware of these types of macro trends is the first step to taking advantage of them, so let’s dive in and take a look at five of the biggest trends we can expect to see in 2017.
No matter what side of the aisle your allegiances fall on, we can all agree that Donald Trump winning the election in November was a huge surprise. All of the experts had Hillary Clinton projected to win big, but the voters told a different story when they began casting their ballots.
Since Trump is a real estate man, it’s fair to assume that his presidency will be good for the overall market. He has talked at length about removing unnecessary regulations that could make it much easier for buyers to get approved for loans. At the same time, since there is so much uncertainty around what a Trump presidency is going to look like, we could very well see the Federal Reserve choose to cut back on their plans to keep raising interest rates.
Prices Will Keep Rising
Many parts of the country saw 2016 as the year when real estate prices returned to the marks they were at before the collapse in 2008. There is a good chance that 2017 is the year that we blow past those marks as real estate prices continue to rise across the country.
Most markets today are a bit short on inventory for the number of buyers that they service, which naturally leads to higher prices. Combine this with mortgages being easier to qualify for and we are likely to see a strong group of buyers push the market as much as 5% higher this year.
Transition to Dense Housing
Another trend that we have been monitoring for the past few years is the slow transition from large suburban single-family houses to townhouses and condominiums. That transition will likely pick up even more steam this year as more millennials come to market looking for a low-maintenance option that is close to local amenities.
Location, location, location has always been the name of the game in the real estate industry, and today’s millennials are taking that to heart as they want to live in modern homes that are close to all of the action.
Skipping the Starter Homes
Another trend that you can expect to see more and more of in 2017 is first-time homebuyers skipping right over those starter homes in favor of options that are more elaborate and more expensive.
With many of today’s buyers waiting until they are well into their 30s before purchasing a home, they are coming into the market with more significant savings and income than we are used to seeing, which means they are looking at more expensive properties.
Attack of the Drones
One trend that will likely change the way agents do business in 2017 is the mainstream use of drones to create aerial footage of listings. This has been a popular topic among cutting-edge agents for years, but 2017 is likely going to be the year that drone footage becomes an expected part of a listing, rather than a unique addition. Agents who are not using drone footage this year are falling behind the times.
From a new president and rising prices to changing tastes and drone footage, there are going to be a lot of changes in our business over the course of 2017. In order to stay at the top of your game, make sure that you are planning to adjust your business to accommodate these new trends.