We are almost half way done with the year of 2017 (crazy right?) and as I always say, the time to buy was yesterday. But if you are still on the fence about buying or maybe on the fence about expanding and buying a second or third property, we should take a closer look at the trends that were predicted in 2017 and how they are holding up.
Experts predict that in 2017, the housing market will remain a seller’s market and that prices on homes will continue to rise, slowly but surely. A reason that the home pricing will slowly increase is because the mortgage rates have moved to being over 4%. This can also hint that competition will continue to grow.
Seeing that in 2016, over half of first-time home buyers were under the age of 35, it is predicted that Millennial’s will continue to break into housing market. One of the reasons for this uptick, is that Millennial’s are currently the largest adult generation and currently make up the greatest percentage of the workforce. However, it is also predicted that Millennial’s will be more inclined to purchase homes that are in the “inland market” of the areas that the reside near because those homes tend to be a bit more affordable. It was found that in 2016, it was harder to find lower to moderate priced homes for first time buyers and it is expected that this trend might continue. One of the reasons that might be affecting this trend is that the owners of these more affordable homes might still owe more than they originally purchase the home for, thus keeping it off the market.
When it comes to California, it is predicted that the number of homeowners will increase considering the fact that only 30% of Californians own a home. There is some data reflecting that the US economy is expected to pick up, thus affecting the number of people who will become more serious and inclined to purchase a home. It is also speculated that in Los Angeles, housing prices are to increase over the next four years. Zillow predicted that this year’s increase will be a rough 1.7%.
Curbed recently complied their list of hot zip codes and second on their list of fastest growing area was 9001. This area in Los Angeles includes: Chinatown, the Civic Center, Elysian Park, Victor Heights, parts of the Arts District and Bunker Hill, and some of Little Tokyo. This is great news for us living down here in Los Angeles! This means we are in the hot spot right now!
Markets and trends are fascinating and constantly changing. It is beneficial to follow certain trends to see what the market is like and to read up on what experts predict will happen. Though the increase both locally and nationally is slightly lower that in previous years, what is important is that it is still increasing. There are other factors that can play to your advantage, for example, the prediction of the US economy. Again, it is important to remember that there are always options. Markets can help guide us in making economic decisions and experts can inform us of what could possibly come down the line. Feel free to contact me so that we can discuss the elements of your financial realities and what paths you can take to make sure that you become part of the percentage of homeowners in California.