New Years is on the same day every year, and yet, it always seems to sneak up on us. With 2017 just around the corner, many have already started to form plans and goals for the upcoming year. One of the items on your to-do list just might be to buy a house.
If so, you should know what’s in store. There’s always a degree of unpredictability in the market, and things are different depending on where you live, but here’s where the signs seem to be pointing. We’ll let you decide the best course of action from there.
Expect Home Values to Rise…Slowly
According to expert analysis, the value of homes should continue to rise just as it has in the past few years. This should be great news for those looking to sell in the near future. Up until recently, the millennial generation has been more reluctant to buy houses than previous generations. But many are now getting to the age where their lives are more stable, and they’re looking to buy.
Millennial or not, if you’re part of the group looking to buy, don’t worry, the prices likely won’t go up as much as they did in 2016. Current estimates put it at about a 3.6% increase.
Still, the earlier you act, the better.
As for renters, the price of renting should stay pretty similar to what it currently is.
The Rise of Surban Communities
This term hasn’t become common use yet, but don’t be surprised if you start seeing it pop-up. As both cities and suburbs expand in size, they’re beginning to run into each other, creating an urban-suburban hybrid, unofficially being dubbed “surban”
For those who want the life and closeness of the city with the more affordable prices and higher safety of the suburbs, this could prove to be a good compromise.
New Homes Might Start Costing More
There is some disagreement on the prices of new homes. Some predict a rise in new home prices due to the increase in minimum wage, as well as labor shortages for construction. Additionally, with the potential for stricter immigration laws under the new president, the labor for home building could be strained further.
This may, however, not prove to be true. Building companies may very well adjust to the new wages, and the labor could stay steady, if not grow thanks to wage increases.
Now is a Good Time to Upgrade
Looking to move from a smaller home into a bigger one? Now is a good time. According to a study by Attom Data Solutions, the price of four bedroom homes hasn’t increased as much as two bedroom homes over the past two years. In fact, it’s about a 20% difference.
Additionally, the study shows that inventory is greater for higher priced homes.
Mortgage Rates Will Likely Rise
With home value going up and millennials hopping on board, there isn’t as much of a need for low interest rates to entice potential buyers sitting on the fence. Even a half a percent increase in rates can have a large impact on how much you pay on a home.
Simply put, if you’re looking to buy a home, buy sooner, not later.
Looking to buy a house for sale in San Diego? We’re here to help. Contact us today, and we’ll assist you in finding not just a home, but your home.