In 2017, more than half of all homes will be bought by first-time homebuyers, and the vast majority of these first-timers will be millennials (age 25-34). And where will they be most likely to settle? The suburbs. This is a bit of a change from the millennials who once traditionally preferred living in urban areas.
The Suburbs are Getting Hotter
For baby boomers (age 55-64), the suburbs have always been the hot home destination, mostly because they want to stay close to friends and family. And now, millennials are flooding into suburban areas, and they’re looking for value, space, privacy, good schools, and big yards. The other driving factor is that residences in the city are rapidly becoming scarce and unaffordable. Plus, many millennials are not shying away from “fixer-uppers.”
The Rise of Medium-sized Cities
In addition to suburban areas near major cities, millennials are also buying homes in medium-sized cities. Locations such as Raleigh, NC, and Fort Collins, CO have seen building permits skyrocket in the last six years as these cities are attracting younger adults who are seeking low rents and lower home prices. Expect this trend to continue in 2017.
Mortgage Rates Up, Lending Standards Down
Mortgage rates will be rising, but probably not far enough to slow down the buying. Balancing out that equation is the fact that banks are slowly relaxing their lending standards and the FHA will be lowering fees for first-time buyers.
Fannie Mae and Freddie Mac Might Be Back!
Fannie Mae and Freddie Mac may begin backing larger mortgages for the first time in a decade. This is one more stimulus for robust home sales (especially for first-time buyers).
Make the Trend your Friend
If you’re a buyer, get out there early, because it appears that competition will be keen in the heat of the 2017 season. If you’re a seller, rejoice! This year will be another sellers’ market and home prices will be rising again in 2017. Now is the perfect time to spruce your home up to get the best price. Who can help with that? Granite Transformations, of course!
Getting ready to sell or buy? Call Granite Transformations for a wealth of affordable, stylish remodeling products and design ideas that will increase the value of the home. To schedule a free in-home consultation, please visit us at granitetransformations.com.