11 real estate facts you should knowMarch 29, 2017
As an agent, it’s important to understand current market conditions, as well as the needs of buyers and sellers. Tech platform Contactually put together a list of the top real estate facts you should know as you head into the 2017 spring real estate market. They’ll empower you and your clients (so share them!).
- Millennials will make up 33% of home buyers. Get your tech on, because these savvy buyers want accurate info fast.
- 17% of under 35-year-olds saved for a down payment in 2016. These aren’t adult kids loafing in basements. They’re young professionals with real buying power. #respect
- 80% of residential growth will happen in suburban markets. Building permits are on the rise, with the majority in the ‘burbs. New construction is one way to guarantee a buyer won’t be outbid.
- The US economy is expected to grow 2% (average) through 2018. A strong economy means better buying power, despite expected rate increases.
- 62% of new and existing homes were considered affordable in 2016. Despite low inventory gloom and doom, the facts show there are still affordable homes available.
- Mortgage rates are expected to rise, but not over 5%. The relative difference in mortgage payments won’t be significant enough to stop determined home buyers.
- Home prices and appreciation are expected to slow to 3.9% (down from 4.9% in 2016. This will bring more affordability to the market, and may actually motivate sellers worried they won’t be able to buy another house.
- Renting is expected to increase past 2016’s 2.3%. That’s good news for investors looking for rental income.
- 84% of buyers will use an online search. It’s becoming the standard for the first step to buying, so align yourself with a solid technology-based brokerage.
- 89% of Millennials, 87% of Gen X buyers, and 85% of Younger Boomers purchased their home through an agent in 2016. Tech doesn’t replace personal relationships. Home buyers and sellers still want personalized service and the protection of an agent.
- 13% of home buyers purchased a multi-generational home in 2016. Expect this trend to grow because of younger Millennials and elderly parents moving in with the “Sandwich Generation” aka Boomers.
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