According to Chief Economist Jonathan Smoke, Here are some of the key predictions for 2017:
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1. Millennials and boomers will move markets
Millennials and baby boomers, the two largest American generations in history, are both approaching life stages that typically motivate people to buy a home: marriage, having children, retirement, and becoming empty nesters.
2. Millennials will look to the Midwest
We believe Midwestern cities will continue to beat the national average in terms of its proportion of millennial home buyers in 2017
3. Price appreciation will slow down
Nationally, home prices are forecast to slow to 3.9% growth year over year, from an estimated 4.9% in 2016.
“Prices are still likely to go up at an above-average pace as long as supply remains so tight,” Smoke says. “The inventory problem is not going away.”
4. Fewer homes, fast-moving markets
The median age of inventory, or the time it takes a home to sell, is currently 68 days in the top 100 metros, which is 14%, or 11 days, faster than the national average.
5. The West will lead the way
We’re expecting metropolitan markets in the West will see a price increase of 5.8% and sales increase of 4.7%, much higher than the U.S. overall.