Housing market predictions are always a bit tenuous, and 2017 is no exception. With the unexpected election of Donald Trump in particular, housing experts aren’t sure how much the market will be effected.
One prediction that seems quite likely to come true is that interest rates will remain at or near their current low levels. It was fully expected that the rates would go up following the election, but that’s out the window now. With possible volatility to come in the economy, interest rates are likely to remain low to help transition the market from our current presidency to our next.
Another prediction you can count on is an increased number of Millennials entering the housing market. A good chunk of Millennials are now in their late twenties or early thirties, and that segment of the population is looking to buy. And unlike previous generations, many Millennials are skipping right past the so-called starter home and looking for houses to fit their growing families and their growing savings accounts. Millennials have waited longer to buy, and now that they are ready, they have good, steady jobs and an eye toward the future.
Baby boomers will make up the next biggest portion of home buyers. Boomers are looking for places that they can retire, often in suburban areas and second tier cities — cities that are conveniently the best places to flip houses right now.
Where will these Millennials and Boomers be buying? In the west. While most experts expect the overall housing market to slow down next year, several big cities in the Western United States are expected to see big growth, according to realtor.com. Some of the top ten hottest markets for 2017 are Phoenix, Portland, Los Angeles, and Sacramento. Phoenix, the hottest predicted market, is expected to see a 7.2% increase in sales and a 5.9% price increase.
All in all, buy and hold real estate and house flipping are expected to persist in popularity and strength. With the right residential rehab loans, house flippers and buy and hold investors alike have been seeking out those hot markets and making their mark. Indeed, house flipping reached its highest level since 2007 this year, and those figures are likely to continue into 2017.
