1. Millennials and boomers will dominate the market –– The housing market will be in the middle of two massive demographic waves – millennials and baby boomers – that will power demand for at least the next 10 years. Although increasing interest rates prompted realtor.com to lower its prediction of millennial market share to 33 percent of the buyer pool, millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent of buyers in 2017.
2. Midwestern cities will continue to be hotbeds for millennials – Midwestern cities are expected to continue beating the national average in millennial purchase market share in 2017. This year, average millennial market share in five of these markets is 42 percent – far higher than the U.S. average of 38 percent.
3. Slowing price appreciation – Nationally, home prices are forecast to slow to 3.9 percent growth year-to-year from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more with Lakeland-Winter Haven, Fla., Durham-Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation.
4. Fewer homes on the market and fast moving markets – Inventory is currently down an average 11 percent in the top 100 metros in the U.S. The conditions limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14 percent –11 days – faster than U.S. overall.
5. Western cities will continue to lead the nation in prices and sales – Western metros are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent.
Top 2017 housing markets
Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s top markets. The realtor.com 2017 top 10 housing markets based on price and sales gains are:
These top 10 markets are forecast to see average price gains of 5.8 percent and sales growth of 6.3 percent, which exceeds next year’s anticipated national growth of 3.9 percent and 1.9 percent, respectively. But when compared to last year, prices in eight of the top 10 markets are expected to decelerate with only Los Angeles and Tucson, Ariz. showing stronger growth than last year.
Buying or selling a home is one of the largest financial decisions you will make in your lifetime, and the Ty Fraley Home Team is the best choice of professionals to help you with your needs. We have been involved in hundreds of real estate transactions helping buyers and sellers realize their goals. Whether you are a first time buyer or a seasoned veteran, we’re here to help make this easy for you. We pride ourselves in listening to your needs and working together to get you exactly the results you want. We work with professionalism and integrity. In fact Ty Fraley is a chairman of the Professional Standards and Ethics Committee in the Palm Beach County Board of Realtors. If you want to be treated honestly and respectfully, you’ve come to the right team. We have many years of experience with waterfront property, country club golf communities, luxury condominiums, and family oriented neighborhoods. These times can be a very stressful, and we pride ourselves in removing you from the chaos. Whether you are moving from around the world or around the corner, we help guide you through the entire process. We also have a tried and true network of help, from financial planners to trustworthy contractors. Because we understand and care about you, you will never be a number with us. You are dealing directly with the owner and broker of Southeast Realty. The thing we find amazing ourselves is that over 80% of our business comes from referrals of past clients and repeat business. Our clients are welcomed into our family where we frequently keep in touch and are always available to you for any future questions you may have. It would be our honor to work with you, and we look forward to a long lasting relationship.