Ask Andy – 2017 Housing TrendsPosted 12/21/2016
As we look ahead to 2017, some experts believe the housing industry will appear very different than it did this year. According to an annual survey of home shoppers by Realtor.com, a leading online real estate company, first-time homebuyers are expected to purchase 52 percent of all homes in 2017, up from 33 percent this year.
We sat down with Maracay Homes President Andy Warren to discuss the predicted changes and what else national experts are saying about the housing market.
Andy, other than first-timers, who else is expected to be in the market for a new home in 2017?
Interestingly, Realtor.com’s survey noted that of those first-timers eyeing a new home, 61 percent will be Millennials. Jonathan Smoke, Realtor.com’s chief economist, said he believes the influx of Millennials and first-time buyers will create fierce competition for affordable starter homes in the suburbs, which could spur bidding wars and higher prices.
In addition, many Baby Boomers who are expected to move in 2017 will also be shopping in the suburbs, because a large portion of them already live there, and will either want to stay close to friends and family or move to another suburb to be near their adult children and grandchildren. This bodes well for the Arizona housing market, which has a strong suburban housing core.
Any home-buying tips as the market heats up?
I agree with the advice offered by other experts: if you’re shopping for a single-family home in the suburbs, look into a winter purchase in order to to avoid increased prices and lower inventory.
What do you think is motivating Millennials to finally jump into the housing market?
For starters, many have indicated they are getting married, moving in with a partner, planning on having children or simply growing tired of their current living situation. And, according to the survey, they’re interested in safety, privacy, affordability and more space, which is why so many are planning to relocate to the suburbs, where all of these things are readily available.
What types of homes will be most popular among these buyers in 2017?
According to the Realtor.com survey, 39 percent of Millennial buyers prefer single-family homes, while 34 percent like townhomes, both of which are more prevalent in suburban areas. That leaves just 15 percent who are interested in multifamily homes and 10 percent who want to live in a condo. But this shift in Millennials looking to the outskirts for single-family homes doesn’t mean the cities are going to empty out. According to the survey, urban areas still remain the second most popular choice among Millennials.
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