Realtors, investors, sellers and buyers in major cities are looking for the newest 2017 real estate trends. Sanpete County is no different. We may be made up of smaller communities, but we still follow the national and state trends. After watching a full year of homeowner price growth, averaging 4.9% in 20161, I decided to forecast my thoughts on the 2017 real estate trends that will affect Sanpete County.
2017 Real Estate Trends
In many ways, the end of 2016 brought some uncertainty to housing markets with the arrival of a new presidential administration. Not to worry though, I have the 411 on the trends that really matter to anyone buying or selling in Sanpete County in 2017. Enjoy.
Millennials and baby boomers will dominate the real estate market.
These two sects of the population are two of the largest generations in history. Boomers will be entering retirement or becoming empty-nesters while millennials are entering major professions, getting married and starting families. All of these activities have traditionally been signs of an increase in buyers.
According to the 2017 National Housing Forecast, millennials and baby boomers will account for approximately 63% of the buyer pool. With these numbers, it will pay to follow the housing wants and needs of each group.
Here in Sanpete County, it will mean more big city retirees moving here to enjoy our rural areas. As for millennials…
Affordable cities will attract the budget conscious millennials.
Millennials grew up in the great recession and have seen the housing crash first hand. As such, many have become more budget conscience and will consider more rural or suburban areas so they can own a home without breaking the bank. In fact, Zillow reported 47% of millennial homeowners live in the suburbs already. Many millennials are saying good bye to big cities.
Sanpete County is an affordable place to live compared to many parts of the United States. Expect millennials to account for over 30% of home sales this year.
There will be a lack of supply, supporting a seller’s market.
We have already seen an uptick in the first part of this year in lack of inventory. Sellers’ properties are receiving multiple offers. The influx of boomers and millennials will make inventory even more scarce. Beautiful homes staged to appeal to these demographics will sell very quickly, leaving sellers that don’t adapt with fewer offers.
Realtor.com tells us “The inventory of homes available for sale is currently down an average of 11% year over year in the top 100 U.S. metropolitan markets”. For us here in Sanpete, that means you will want to brush up on your negotiation skills or choose a Realtor with substantive negotiation experience.
Interest rates are on their way up.
Interest rates have already started to rise, and the chief economist for Realtor.com has already pointed out, “With more than 95 percent of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some first-timers out of the market.” If you are a considering buying in 2017, get a move on before rates rise more.
There is some good news regarding mortgages for 2017. According to the Mortgage Credit Availability Index, it is easier now to obtain a mortgage than anytime in the past eight years. Programs have expanded and the market is showing strength. If you are going to be applying for a mortgage in 2017, now is the time.
Recapping 2017 Real Estate Trends That Affect Sanpete County
Overall, the market should be strong, although price increases will slow. The low inventory will keep buyers in a very competitive market. This is unlikely to change for several years as millennials and baby boomers enter different life stages.
For those of us in Sanpete County, the outlook is good. We may see low inventory and higher interest rates, but overall, 2017 will be a great time to buy or sell. The boom from Salt Lake City is spreading. Provo-Orem was just placed in the top 25 list of real estate markets this year1. Good news for all of Utah, including Sanpete County.
If you have any questions about how real estate trends in 2017 will affect Sanpete County, let me know in the comments.