5Real Estate Trends 2017
Rising Rates A majority of the members of the Fed's rate-setting board predict there will be three more increases coming in 2017 and Mortgage interest rates are expected to increase, but to no higher than 4.3 percent on the 30-year fixed rate.
Though rates may rise, mortgage credit will likely be more widely available due to slightly looser lending standards. In 2017, government-owned mortgage companies Fannie Mae and Freddie Mac will begin backing larger mortgages for the first time in over a decade, making it easier for buyers in expensive markets to finance their purchases.
New homes will be even more expensive New construction always comes at a premium, but that will be even more true in 2017, A labor shortage in the construction industry is forcing builders to offer higher wages to compete for workers. Those costs, will be passed on to buyers.
Millennial Will Be Big Buyers
Research from Zillow shows that 47% of millennial homeowners have opted to buy houses in the suburbs, largely due to the lower cost of living that it entails. The amenities that many suburban areas offer are also appealing, even if it means that homeowners have a longer commute.
Rental affordability will improve Experts predict renting will become more affordable next year. Zillow predicts rental rates will rise only about 1.5 percent in 2017, This is due in part to an increased supply: A lot more multifamily rental units are being built, and many renters have doubled up with roommates. These two things have helped supply rise to meet rental demand.
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