Jan 12, 2017
Salt Lake City Utah Housing vs National Housing: 2017
How does the Salt Lake City housing market compare to the national housing market in 2017?
Good question..no great question! Let's look at what the people much smarter than I am (I know..hard to believe haha..) are saying about the upcoming housing market in 2017.
2017 National Housing Forecast
According to Realtor.com the national housing market will be a year of slowing, but with moderate growth. Home prices are predicted to increase 3.9% and the existing home sales are predicted to increase 1.9%. Interest rates are expected to increase to 4.5% due to higher expectations for inflationary pressure.
New home sales are expected to grow 10% with new home starts expected to increase 3% over the next year.
Prior to the election, demographics and an improving economy were laying the foundation for a substantial increase in first time home buyers in 2017, but due to mortgage rate increase predictions-first time home buyers may face new hurdles as they work through the qualification and buying process.
Housing Trends for 2017
With next years forecasting of slowing price and sales growth, increasing interest rates and changing buyer demographics the stage is set for 5 key housing trends:
1. Millennials and boomers to dominate market.
It's expected that the baby boomers and millenials will push demand for the next 10 years or so. Realtor.com lowered it's millenial expectation because of interest rates on the rise but still has millennial market share at 33% of the buyer pool. Baby boomers are expected to make up 30% of buyer market share in 2017.
2. Hotbeds for millennials in midwestern cities.
The midwestern cities are expected to beat the national average for millennial purchase market share. Madison WI, Columbus OH, Omaha NE, Des Moines IA and Minneapolis MN are leading the pack.
3. Slowing price appreciation nationally.
Home prices are expected to slow 3.9% year over year from estimated 4.9% in 2016. 26 of the top 100 largest metros are expected to see price acceleration of 1% or higher. Likewise, 46 markets are expected to see a slow down in price growth of 1% or more.
4. Less homes on the market equals fast moving markets.
Inventory is down in the top 100 metros in the U.S. by 11%. The conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in top 100 metros which is 14% or 11 days-faster than U. S. overall.
5. The best is in the west.
Western metros are expected to see a price increase of 5.8% and a sales increase of 4.7%, which is higher than the U.S. overall. These markets are leading Realtor.com's Top 10 Markets for 2017 holding the top 5 spots (Los Angeles, Sacramento, Riverside, Tucson and Portland) and 11 of the top 25 (Colorado Springs, San Diego, Salt Lake City, Provo-Orem, Seattle and Oxnard-Thousand Oaks-Ventura, California.)
Salt Lake City Housing Forecast 2017
Despite a more moderate housing market overall in 2017, strong local economies and population growth will fuel the nations hottest markets. Speaking of strong local economies and population growth-Salt Lake City is ranked number 16 on the nations top 100 largest U. S. metros. Home prices in Salt Lake are expected to increase nearly 7% and home sales to rise by 5%.
If you have any questions or comments about this information or want to strategize a Utah real estate move for 2017 please contact me.