2017 is projected to be a hot year for home sales. There have been an increase in home buyers over the last few years as millennials are turning away from renting and are now at a point where they can begin to buy. This forecast of the 2017 Michigan real estate market will give you insights on the pros and cons of buying and selling a home this year.
Rising rent prices will increase the number of home buyers
As rent prices continue to rise, more people are opting to buy a house. Especially millennials, who are now at a tipping point between renting and buying, rising rent prices are pushing them over the edge toward becoming first time home buyers. In many cases, because of the increase of luxury and expensive apartments, a monthly mortgage payment can be the same or cheaper than monthly rent on a modest home. Because of that it’s becoming more of a no-brainer to buy a home.
Home prices are nearing pre-recession mark
Home prices have steadily risen throughout the last year and will continue to rise gradually. This puts home prices near pre-recession mark. This is great news for home sellers because it means that they might have a better chance to recoup home value that may have been lost during the recession. As the market changes this year, it's important to work with a real estate agent who can help you determine the listing price of your home based on the market.
Low home inventory
This year there has been low inventory for home buyers and that trend will continue in 2017. Because of this, home sellers should take advantage of the market and put their homes up for sale. With lower seller competition, homes are selling quicker and more commonly at asking price. Putting your home on the market in 2017 will be great timing for getting a fair price for your home and buying the home of your dreams.
Home affordability is at it’s peak
Home affordability is steadily around the 60-65% mark, and it’s hitting it’s peak. Affordability is projected to slightly drop in 2017, however remain in the top of the 50% mark. If you are considering buying a home, it may be a smart idea to start looking sooner than later. However homes will still remain at higher affordability than we’ve seen in years prior.
Mortgage rates will slightly rise
Throughout 2017 mortgage rates are projected to slightly rise. They will not raise over the 5% mark, but they are expected to begin to inch higher than we’ve seen in 2016. However, in 2016 mortgage rates were also expected to rise, and didn’t rise as projected. So some experts believe that although mortgage rates are projected to rise, they will not rise as much as projected.
The 2017 real estate market forecast is projected to be a great year for both home sellers and home buyers. It’s smart to sell now due to low competition and raising home prices. It’s also a good time to buy before mortgage rates rise, and to put money toward a mortgage instead of rapidly growing rent prices. The best way to know if 2017 is the right year for you to buy or sell your home, you should consult with a realtor to understand what resources you’ll need to do so.
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