Top Real Estate Trends of 2017
There are so many factors that could affect the real estate market in the coming year. Some of these factors include the fact that we have a new incoming President, interest rates have remained low, gas prices are down, and more millennials are entering the market.
The first trend that will continue to grow in 2017 is the use of drones. The use of drones by both agents and homeowners alike will sky rocket in the coming years. The FAA has cleared the commercial use of drones and the skills to fly them can be taught in as little as 30 minutes. Buyers are looking for something new. They are tired of the same still pictures of the house and are looking for a fresh perspective on their investment. This is also a new way for agents to interact on social media and with clients all over the world. This technology is also allowing buyers to skip home inspections and do a fly over of the roof, chimney, and surrounding area from above.
The second trend is something called "surban". This movement is combining the sprawling suburban style neighborhoods and the more dense townhomes and apartments where you can live, work, play all in one area. This will give the amenities of the "big city" without having to actually commute to the city. These communities are meant to be inclusive and allow more options for lower income individuals to have access to many amenities that people live in the city have.
The third trend is the fact that more millennials will be buying their first home in 2017 than in years past! The fact that interest rates are down and millennials are paying down student debt is giving more individuals the chance at a starter home or condo. Student debt will continue to be the deciding factor for millennials to purchase but they are in a better position than the next generation that has accumulated much more student debt.
The next trend has to do with the presidential election. There has been a lot of speculation on just how Trump will affect the real estate market. Some say his presidency will create stock market uncertainty and others say he will bring regulatory relief and stability. This should overall keep the real estate market strong over the next year. Interest rates may continue to rise at a faster pace if Trump's initiatives create inflation.
The final real estate trend of 2017 is focusing on Generation Z. The first of this generation will be turning 18 in 2017 and coming of age in a very different world than millennials did. Gen Z will have higher wages and lower interest rates compared to the previous generation. The majority of Gen Z say they want a big house with lots of space. This is mostly fueled by unrealistic social media obsessions and coupled with the misunderstanding of a days work to earn the money for a large house. The next generation has become increasingly entitled which could possibly hurt the future real estate market because they do not understand how to earn their way.
These are all interesting ideas to keep in mind while watching what the markets do over the next few years. Real estate is still considered to be a good investment and there are no predictions saying otherwise.