The only guarantees in life are death and taxes, however, that doesn’t mean that we can’t draw any conclusions based on some good data. Since the election and the surprising presidential win of the Donald, we’ve already seen interest rates rise, which will most definitely affect the youngest sector of home buyers.
“With more than 95% 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,” says Chief Economist Jonathan Smoke, who worked on the realtor.com 2017 housing forecast.
According to realtor.com’s forecast, the national real estate market in 2017 is predicted to slow down. Perhaps slow down isn’t the best phrase to describe what might happen.
“I would characterize our 2017 forecast as a moderation, as opposed to a slowdown,” says Smoke. “The pace of growth is still strong and, for pricing, still represents an above-average level of appreciation.”
According to Smoke, the real estate market is really just going back to “normal prices”. These normal prices are good from a recovery standpoint, however, it could signal a tougher home buying process for some consumers.
If mortgage rates rise, it could get tricky when it comes to home affordability, compared to the 2016 market.
Armed with this info, let’s make some predictions for Minooka IL in 2017:
1.Millennials and baby boomers will move Minooka IL real estate markets
In 2017, the Minooka IL real estate market will be in the center of two major demographic surges that will influence the real estate demand, for possibly the next 10 years.
2.Millennials be more attracted to the Midwest, which includes Minooka IL
Since the financial picture isn’t looking great for young home shoppers, the midwest will look increasingly attractive because of its affordable cities, such as Minooka IL. Midwest cities will probably continue to beat the national average for a number of millennials buying homes in 2017.
3. National price appreciation will slow down
According to some forecasts, home prices will slow to 3.9% from 4.9% in 2016.
“Prices are still likely to go up at an above-average pace as long as supply remains so tight,” Smoke says. “The inventory problem is not going away.”
4. Less houses, and faster moving real estate markets
Home inventory is down approximately 11%, and the conditions that are limiting the home inventory aren’t expected to change anytime soon. The current median time that a home stays on the market in the Midwest is 68 days. This is 11 days shorter than the national average.
What this means for Minooka IL home sellers is, the home supply is down and there are motivated buyers who are looking to buy quickly. If you were on the fence about listing your home, now would be a good time to contact your Minooka IL real estate agent Jeff Gregory.
5. The west coast is going to lead the way in price increases
Some experts are expecting that major west coast markets will see a price increase of 5.8% and a sales increase of 4.7%.
What does all of this mean for the Minooka IL real estate market?
2017 is expected to be a banner year for home sales in the Midwest. This includes cities such as Minooka, Channahon, Shorewood, and Joliet. With the lower overall home prices, the limited supply, and motivated buyers, Minooka sellers should see great things in real estate for 2017.
Now would be a great time for you to contact Minooka’s best Realtor, Jeff Gregory. Jeff has extensive experience working with home buyers and sellers in Minooka and can make 2017 your year for real estate success. Contact Minooka real estate agent Jeff Gregory today!