As we settle in to the new year, let's look at a few factors that will have an influence on the housing market and help shape the industry over the next 12 months.
- First-Time Millennial Buyers. According to a survey conducted last year by realtor.com®, it is estimated that more than half of all homes will be bought by first-time home buyers in 2017.
- Increase in Interest Rates. In December the Federal Reserve raised interest rates. It is predicted that the rates will be raised three more times in 2017 according to Fed's rate-setting board.
- New Construction. New build permits reached a high point in 2016 that we haven't seen in years. New home construction was up about 5% over 2015. This trend is likely to continue through 2017 especially in Colorado as there is increasing demand from the growing population.
- Inventory Levels. Most of 2016 saw low inventory levels in major cities across the country. Though towards the latter part of the year, there was an increase of sellers seeing equity opportunities and felt comfortable putting their homes on the market. We should see higher activity in early 2017.
- Smart Homes. With all of the talk of smart homes and products and technology that are increasingly making it easy to automate our home activities, 2017 is sure to see an increase in builder smart home options and consumers adding to the overall smart ability of their current homes.
