What's in Store for Real Estate in 2017?

2016 was a great year for the real estate industry. Mortgage rates were low, housing prices were up, and it was a solid market for sellers. The coming year will have both highs and lows, and market professionals can't wait to see what the future holds. Here's what Lucido Agency believes is on the horizon for the industry in 2017.

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Volatile mortgage rates

Current events have a way of shaping mortgage rates and this past year has been an interesting one. Things will likely continue to change as our nation adjusts to President Trump and his new policies. Fallout from the Brexit will probably also influence the current mortgage interest rate situation in the United States due to ties with worldwide markets. But, there's no need to worry quite yet. In looking at mortgage rates over the years, our current numbers are still quite low. The trend looks like it will go up, making it all the more crucial for homebuyers to lock in rates early and to buy quickly. There's honestly no way to know when the rate will go up or by how much, so getting in early is your best bet.

Millennials will buy in force

Millennials, or the generation of young people aged 20-35 years old, are gearing up to buy a house for the first time during 2017. This will most likely be their big year. They have made it past a big chunk of their student loan debt and have been able to save for a down payment. They're settling into their careers and their lives. They are tired of renting and want a more permanent and financially savvy way to live. Now that this generation is getting closer to their 30's, they are thinking more responsibly about settling down, getting married, and raising children.

Lucido Agency has professional real estate teams across the United States and we stand ready to help you find the house that suits your needs. We understand the Millennial lifestyle and perspective and we'll work to satisfy your needs in every way.

More drones and aerial photography

Have you noticed the new aerial and bird-eye-view photos and videos on real estate listings lately? All of that come from the hottest item to hit the real estate market: drones! Now that the Federal Aviation Administration is allowing consumers to use unmanned aerial vehicles to take video pans, the use of drones on real estate listings has sky-rocketed. Images and video from drones will become increasingly popular since it's a great way to show an unexpected view of a property.

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Blending of suburban and urban neighborhoods

We've seen the continuing growth and sprawl of suburban areas from major metropolitan centers. Here's the interesting thing though-- we will now start to see a shift and a less distinct line between the city and the suburbs. This new look will include single-family homes, townhouses, and apartments all in the same neighborhood--it's called "surban."
This new type of neighborhood will bridge the gap between the city and the suburbs and will have appealing aspects for all parties. It will be away from the biggest hustle and bustle of a big city but it will have the family-friendly elements that the suburbs enjoy. It's more than just mixed-use property, it's truly the best of both worlds when you can walk to get groceries and also have quick access to downtown. The neighborhoods are created to be inclusive of all people.

Prices will rise and affordability will go down

Due to the growing demands of homebuyers, prices grew every month during 2016 and experts predict that 2017 will see much of the same. Wages are also expected to grow in America's big cities, which will bump up the economy. However, the amount of affordable housing, especially in major metros, is not expected to rise. This is another reason why younger generations like Millennials are struggling to purchase their first homes. Rising mortgage rates and a shortage of low and moderately priced homes will make it tough on buyers. However, remain optimistic, you never know what unexpected changes could take place in the new year.

This market is still a seller's market, so if you are contemplating the possibility of selling your house in 2017, it's time to work on a spring selling strategy with Lucido Agency. We are the #1 Keller Williams team in the world and we have teams across the United States who would love to help you sell your house in 2017.

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