Every year, Realtor.com releases the much-anticipated National Housing Forecast to outline the potential road ahead for most markets across the nation. As a whole, the report expects many of the markets in the nations top metros to slightly cool, yet still continue to grow. The report suggests that there could be a nationwide average of 3.9% growth in housing prices, a 1.9% increase in the number of transactions, and interest rates are expected to climb 4.5% as well due to inflation.
The report examines the top 100 metros across the U.S., and ranks them based on their expected growth. The Houston-The Woodlands-Sugar Land area is ranked as number 29 on the report, ahead of San Antonio, Dallas, and El Paso, and behind Austin. The report expects the average home price in this area to grow as much as 4.01% and the number of transactions to increase by 6.08%, ahead of the national average on both counts.
What Could The Future Hold For Pearland, Houston, and Manvel Real Estate
In addition to these statistics, here are the five major trends the report suggests we’ll see in 2017.
1. Millennials and Boomers Will Be The Driving Forces of the Market
For industry professions, this isn’t the first time they’ve been told about the importance of these two demographics in the real estate market–and it won’t be the last. The report speculates that these two dominating forces could power the market for the next 10 years .
2. Millennials Will Seek Out Midwestern Cities
Large Midwestern metropolitans like Columbus, Des Moines, and Madison will continue to see the greatest amount of millennial buyers in their markets. In 2016, they accounted for nearly 42% of the market share in these areas, and this percentage is expected to increase in 2017 even with the predicted increase in interest rates.
3. Home Prices Will Grow, But At A Less Rapid Pace
As mentioned above, the average price of a home is expected to rise nationally by 3.9%, which is down from last year’s prediction of 4.9% increase. Regardless, market values are still rising, just at a slower pace. In the Houston area, the average home price has held steady over the past year, but many industry professionals, including Realtor.com, suggest that this could change in the not so distant future.
4. Anticipate Less Inventory and More Turnover
Across the country, inventory is down an average of 11% in many of the top metros. This lack of inventory could be attributed to a shortfall of workers, as the boomer-era retires and there are fewer certified workers to replace them. It is also becoming more difficult for projects to get the funding they need to begin development. With less new inventory to meet the needs of a growing market, there will be more turnover in the resale market.
5. Western Cities Will Continue To Dominate The Nation In Sales and Prices
The greatest increase in housing prices will likely happen in western metros like Colorado Springs, Seattle, and Salt Lake City.
The forecast above looks at markets across the country and makes some generalizations for the country’s biggest markets. If you’d like to learn more about the industry close to home, get in touch with one of our excellent agents today. Whether you’re looking to buy or sell, our Houston real estate experts would be happy to help you every step of the way. Get Sam, Get Sold, and Get Moving!