As 2016 is quickly approaching it’s end, I wanted to take a moment to talk about trends that we saw this year in Real Estate… and what we might come to expect for 2017.
Real Estate is just one big roller coaster. There are big upward swings, and there are low barrel rolls. For the last 2-3 years, we’ve been on one of Real Estate’s biggest upward swings since the founding of the housing market. Like all good things, the housing market high can only sustain these levels for so long before we are looking towards that gruesome low.
In 2012 we saw prices of homes raise 8%, in 2013 we saw an 11% raise, in 2014 we saw a 5% raise, and jump forward from 2015 & 2016 we saw increases fluctuate between 2-4%. What this tells us is that the housing market is starting to reach a plateau. This is a tale-tell sign of a housing market that is ready to take a dip.
This year what we found is that the pool of buyers is younger than before. Buyers between the ages of 25-34 have made up the majority of home sales, and to put things into a greater perspective – over 68% of these were 1st time home buyers. While many of these buyers had intentions of using the properties that they bought as their primary living homes, we did see a large surge in first time home buyer investors.
What 2016 brought to Real Estate, as well as politics — is the ever growing love of consumer technology. As a Realtor, being at the forefront of every social media outlet and posting site gives you a strong advantage over your competitors. More than 90% of home searches are started online. The first place a buyer falls in love with a home is online. Gone are the days of flipping through newspaper ads and looking at a grainy black and white picture of a property and hoping to attract a buyer. The internet has been around for a few decades now, and it has been ever evolving. To keep your home at the front of the line for buyers to preview… you’ll need a tech savvy agent to lead the way.
So… what can we expect to see in 2017? Be on the lookout for: Slowly rising mortgage rates, housing prices to level out, and for more people to make a move before the housing market takes it’s next roller coaster move!!
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Kayla Staup, HER Realtors