Many see millennials, low inventory and rising interest rates as key game changers in the coming months. RisMedia’s Housecall predicts these four trends:
Millennials leave home: After many years of millennials struggling with one of the toughest job markets in decades, often forcing them to live with their parents, experts see a marked change on the horizon: “[T]he economy has improved now, and with jobs seemingly more abundant, millennials are coming to the real estate market.” Says RisMedia. Many have saved significant amounts of money living at home, and home ownership in this age group is on the rise. This bodes well for everyone. “This influx of new buyers and increased demand is likely to lead to a strong 2017 market as they seek to take advantage of low interest rates.”
Interest rates rise: While experts debate how much interest rates will rise, most believe increases are inevitable. RisMedia predicts the rise will be gradual, however, and that it will still be a better option to buy than rent in many real estate markets.
Move or remodel? RisMedia believes that homeowners who have locked in record low interest rates in recent years will continue to weigh the benefits of remodeling versus moving. “The question many people are facing is whether they should spend the money remodeling, or take advantage of their increased equity and buy their long-term dream home.” Recently, many have opted for remodeling, which has led to the next trend…
Tight home supply: Many markets, including Denver, have seen tight inventory, creating an extremely competitive situation for buyers. Such markets favor those who can offer cash and don’t need to sell their existing homes before buying another. For this reason, many homeowners are deciding not to move. RisMedia sees this trend continuing in 2017, leading to a continuation of tight inventories and higher prices.