{"id":6279,"date":"2017-01-03T13:58:57","date_gmt":"2017-01-03T21:58:57","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=6279"},"modified":"2022-06-16T11:25:10","modified_gmt":"2022-06-16T18:25:10","slug":"2017-housing-market","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/2017-housing-market\/","title":{"rendered":"What will 2017 have in store for the Housing Market?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6288\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/01\/2017-Housing-Market-Predicitions.png\" alt=\"2017 Housing Market\" width=\"560\" height=\"315\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/01\/2017-Housing-Market-Predicitions.png 560w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/01\/2017-Housing-Market-Predicitions-300x169.png 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/01\/2017-Housing-Market-Predicitions-352x198.png 352w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Is 2017 another year of real estate success? <\/span><\/p>\n<p>The housing industry continued to experienced a significant upturn in 2016, with healthy increases in values and substantial results for investors.<\/p>\n<p>As we look to 2017, how will the housing market react to a new presidency, new technology, and new buyers in the marketplace?<\/p>\n<p>The housing industry saw healthy increases in values in 2016, thanks to factors including low interest rates, lower gas prices, stronger wage growth and millennials entering the market.<\/p>\n<p>Here\u2019s a look at predictions for the real estate industry in 2017 and how it will affect investors, renters, and homeowners.<\/p>\n<h3>The Rental Market<\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"http:\/\/www.inman.com\/2016\/11\/22\/zillows-6-predictions-for-the-2017-housing-market-under-trump\/\">Zillow predicts 2017<\/a><\/span><span style=\"font-weight: 400;\"> will mark a new stage of the post-recession housing recovery and expects recent trends in rental prices to reverse course next year. \u00a0Slowed rent prices are expected to be especially prevalent in tech-dominated cities, which saw the most growth in last 5 years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Markets that saw over <\/span><a href=\"https:\/\/www.bisnow.com\/national\/news\/multifamily\/tech-dominated-cities-are-seeing-a-deceleration-in-rent-prices-65928\"><span style=\"font-weight: 400;\">10% rent growth<\/span><\/a><span style=\"font-weight: 400;\">, like Seattle and San Francisco, are unsustainable as the pool of renters who can&#8217;t afford the rental rates increases and \u00a0demand decreases.<\/span><\/p>\n<p><a href=\"http:\/\/www.corelogic.com\/blog\/authors\/sam-khater\/2016\/07\/single-family-rent-growth-slows-down.aspx#.WGwSArYrLBI\"><span style=\"font-weight: 400;\">Data from CoreLogic<\/span><\/a><span style=\"font-weight: 400;\"> reveals the deceleration of rental prices in single-family units. Single-family rents climbed steadily between 2010 and 2014, however rent growth has softened during the last 18 months. Since December 2014 when the rent growth peaked at a 4.6 percent year-over-year rate, it has been slowly decelerated, with a 1.2 percentage point deceleration since the peak in 2014.<\/span><\/p>\n<h3>What Investors can expect for the 2017 Housing Market<\/h3>\n<p><span style=\"font-weight: 400;\">Here are four\u00a0things to watch for in <\/span><a href=\"http:\/\/www.marketwatch.com\/story\/5-real-estate-trends-to-watch-in-2017-2016-11-15\"><span style=\"font-weight: 400;\">real estate in 2017 according to Market Watch<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<h3>Drones use for Real Estate<\/h3>\n<p><span style=\"font-weight: 400;\">Commercial use of drones in 2017 <\/span><a href=\"http:\/\/www.marketwatch.com\/story\/faa-eases-restrictions-on-commercial-drone-use-with-long-awaited-part-107-ruling-2016-06-21\"><span style=\"font-weight: 400;\">has been cleared for takeoff by the Federal Aviation Administration,<\/span><\/a><span style=\"font-weight: 400;\"> and the use of drones by the real-estate industry is likely to expand dramatically. <\/span><\/p>\n<p>Initially, drones were introduced to real estate as a tool for sellers. The expansion of drone use means they are now a tool for home buyers.<\/p>\n<p><span style=\"font-weight: 400;\">\u201cBuyers in Seattle are skipping the home inspection because the market is so hot, but that doesn\u2019t mean you can\u2019t get a drone to take a quick look,\u201d Steve McIrvin tells Market Watch, chief executive of Autel Robotics USA, a Bothell, Wash.\u2013based drone manufacturer. McIrvin recommends that a buyer who skips the home inspection in a competitive buying situation use a drone to inspect a home\u2019s roof, to ensure that a chimney doesn\u2019t have cracks, or to circle the house if access isn\u2019t available.<\/span><\/p>\n<h3>Surban: Urban Amenities in the Suburbs<\/h3>\n<p>Surban living<span style=\"font-weight: 400;\"> is becoming a new way of life for many: where the blend of urban and suburban living provides the best of both worlds. The term surban defines\u00a0the trend seen recently around the country of suburban areas incorporating urban principles.<\/span><\/p>\n<p>With surban living, it\u2019s possible to <a href=\"https:\/\/www.rentecdirect.com\/blog\/whats-your-walkbility-rating\/\">walk to work<\/a>, like in a city, as well as enjoying pedestrian access to groceries, entertainment and youth- and sport-friendly parks \u2014 plus reliably strong public schools.<\/p>\n<p>\u201cExisting suburban neighborhoods are adding urban amenities so that there\u2019s an environment where people can live, work and play right outside of the core part of the city,\u201d said Peter Burley, a real-estate executive in Oak Park, Ill., an urbanized inner-ring Chicago suburb.<\/p>\n<p>John Burns Consulting expects nearly 80% of residential growth to occur in suburban communities over the next 10 years \u2014 up from 71% from 2010 to 2015 \u2014 compared to just 15% for \u201curban\u201d areas through 2025.<\/p>\n<h3>Millennials <i>Might<\/i> Finally Buy Homes<\/h3>\n<p>More millennials \u2014 roughly, those born between the early 1980s and the late 1990s \u2014 are expected to buy a first home in 2017, according to the National Association of Realtors.<\/p>\n<p>Unlike generations\u00a0past, Millennials who enter the market place are opting for larger homes beyond the traditional starter home or condo. According to Jessica Lautz, managing director for research at NAR, with the markets doing so well, and interest rates as low as they are, millennials who have paid down their student debt and built up their cash may be in a <a href=\"https:\/\/www.rentecdirect.com\/blog\/finding-and-keeping-an-investor-friendly-real-estate-agent\/\">position to buy more house than real-estate agents<\/a> might think.<\/p>\n<h3>Trump\u2019s Presidency on Real Estate<\/h3>\n<p><span style=\"font-weight: 400;\">Real estate professionals, like Rentec Direct\u2019s very own <\/span><a href=\"http:\/\/money.usnews.com\/investing\/articles\/2017-01-02\/how-president-trump-will-redefine-the-real-estate-investment-market\"><span style=\"font-weight: 400;\">Nathan Miller, told US Money News that<\/span><\/a><span style=\"font-weight: 400;\">, \u00a0<em>t<\/em><\/span><span style=\"font-weight: 400;\"><em>he Trump presidency will improve the real estate market.<\/em>\u00a0 &#8220;The reasoning is pretty simple: Trump is a real estate guy and his mentors, policies and cabinet are going lean in the direction of real estate investments. Real estate is a market Trump knows well, so whether it&#8217;s a conscious decision or not, his moves in the White House will improve the real estate market&#8221;.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As an example, Miller cites Trump&#8217;s plan to increase tariffs on <\/span><a href=\"http:\/\/www.usnews.com\/topics\/subjects\/imports\"><span style=\"font-weight: 400;\">imported goods<\/span><\/a><span style=\"font-weight: 400;\">, which will divert funding and investment to local resources. &#8220;There&#8217;s nothing more American than American lumber building American homes on American soil,&#8221; he says.<\/span><\/p>\n<p>Similarly, Rick Sharga, executive vice president of Ten-X, formerly Auction.com, a real-estate auction site, told Market Watch that the Trump presidency being good for the housing and mortgage markets in the long term. If Trump remains \u201ccommitted to bringing regulatory relief \u2014 and regulatory certainty \u2014 to the financial-services industry, which should make more credit more available to average home buyers who have been locked out of the market by today\u2019s extraordinarily tight credit standards,\u201d he said.<\/p>\n<p><span style=\"font-weight: 400;\">As a result, home buying should remain strong in 2017.<\/span><\/p>\n<h3>Generation Z<\/h3>\n<p>The first Gen Z\u2013ers will reach their 18th birthdays in 2017, introducing the newest generation of homebuyers to the marketplace. According to the National Association of Realtors, Gen Z is a lot different from Millennials, that came of age in the midst of recession, war, terrorism and a stock-market collapse, and was burned by the housing downturn and crushing student-loan burdens.<\/p>\n<p><span style=\"font-weight: 400;\">Gen Z will come of age with low interest rates, better job prospects and higher wages to help cushion the high costs of college education, said NAR research director Lautz. \u00a0The result may impact both the rental and homebuying market. <\/span><\/p>\n<p><em><strong>How do you believe the housing market will evolve in 2017? Let us know in the comments!<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Is 2017 another year of real estate success? The housing industry continued to experienced a significant upturn in 2016, with healthy increases in values and substantial results for investors. As we look to 2017, how will the housing market react to a new presidency, new technology, and new buyers in the marketplace? The housing [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":6289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":1,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[6969,25,445],"class_list":["post-6279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-housing-market","tag-investors","tag-real-estate","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - 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