Housing Market Expectations for 2017
2016 housing sales seemed just as uncertain as the volatile presidential race, with numbers rising in July and dropping dramatically in December. But now that 2017 is here, there seems to be a move in a more stable direction.
According to the Mortgage Bankers Association, January applications were up 22 percent compared to December and 9.2 percent higher than January of 2016. This is most likely because of relatively low supply, rising household incomes and favorable demographics. While supply is expected to increase slightly compared to 2016 levels—though it will remain low overall. People in general also appear more interested in buying homes. This year many millennials are expected to enter the market, either buying or renting, which means that they will make up a substantial and expanding portion of the buyer pool.
However, until more policies are revealed there is bound to be continuing uncertainty about the future. While the current administration appears supportive of boosting the housing market, it is hard to predict how policies will affect it until they are actually put into place. Nevertheless, many people working in the housing market remain cautiously optimistic.
2016 was filled with highs and lows, but the factors and trends affecting 2017 will, hopefully, result in a more predictable market.