In 2016, there was a lot of speculation that 2017 would be the year where the country’s real estate industry finally transitioned from recovery to normalcy. Most experts are still optimistic that more companies will start building homes in the next few months.
2017 Housing Market Trends Open the Door for Custom Built Homes
What’s keeping the optimism up for most people in the real estate industry is the record low mortgage rates, properties continuing to appreciate and millennials finally buying homes. That latter was a well-known fear for a lot of real estate experts. Most of them predicted that the millennial generation will opt out of the traditional housing, and perhaps continue to rent or invest in travel. However, housing market trends are showing that more and more individuals are opting for custom built homes, and mortgage companies are becoming increasingly supportive of building.
Taking all of that into consideration, here are some of the market trends you can expect in 2017:
• Steady rise in prices
It’s good news for those in the real estate industry or those thinking of selling their homes because the forecast suggests that the consistent increase in property prices for pre-existing homes will continue in the coming months as it has since October last year. Conversely, the sales growth will gradually slow down.
That should not cause too much worry though, because the uptick remains, despite it coming slower, in comparison to last year. The unemployment rate and high consumer confidence suggests that the trend in property sales and prices will remain positive.
• Properties will be less affordable.
Because of the lack of inventory of moderately priced homes and the uptick in mortgage rates, more people will not be able to afford the homes they wanted in the cities that they live in, if they are purchasing a ready-built home. This is good news for those wanting custom built homes because the value will be more practical to have exactly what you want. That’s despite the foreseen wage increase in most major cities in the country. In the last 5 years, the number of low-priced homes listed has decreased drastically. Creating an even further gap in the demand for mid-priced homes in cities with a high standard living.
Although the housing market will continue to stay in good standing, the value of a custom built home is more apparent than ever. The "fixer-upper"'s perceived value is beginning to dwindle due to market increases and costs of repairs, and the gap is closing between building and buying. Thankfully, mortgage companies have caught on, making it easier than ever to build your own home. What type of home would you build? Let us know in the comments below!