As we quickly approach a new year, predictions are rolling in on how the housing market is going to look in 2017. At Miller & Smith, we want you to be informed so that our current homeowners and prospective homebuyers know what to expect from the market in the year ahead. Whether you are looking to purchase a new home, or just want to be in the know, we have rounded up a few predictions for the 2017 housing market according to industry experts!
Millennials are going to buy
As many know, Millennials already make up a significant part of homebuyers, and in 2017, this is not going to change. Realtor.com predicts that Millennials will make up about 33% of total homebuyers over the next year, with many of them purchasing homes for the first time.
Millennials are currently between the ages of 18-34, and while it may seem late for some of them to be buying a first home, turns in the economy throughout their adolescence has deterred home buying until recently. In many cases, they are more prepared to purchase a home because they have rented or lived at home longer after college than previous generations, leaving plenty of time to save money.
Surban is the new thing
‘Surban’ is a combination of suburban and urban, where benefits of both are combined into one community. According to Marketwatch, ‘surban’ is more than a mixed-use community, where these suburban communities are more inclusive and continue to add urban-like amenities to their repertoire. Communities are also building new homes that are affordable for all types of families, where townhomes and single-family homes are mixed together.
Miller & Smith continues to follow this trend in a number of different communities like Embrey Mill, where we offer both new townhomes and new single-family homes, and One Loudoun, where urban amenities are a plenty and our Next Level Homes are coming soon!
Interest rates may increase slightly
If you are considering purchasing a new home, now is the time to do it to get the best mortgage rates available! Although interest rates are relatively low when compared to the past few decades, we are seeing slow increases at the end of 2016. According to the Washington Post, rates are not predicted to surpass 4.3% on the 30-year fixed rate and there is still a positive outlook on the housing market from industry experts and homebuyers alike.
Gen Z is on the cusp of home buying
You’ve heard about how the Millennial generation will rule the home buying market in 2017, but homebuilders like us also have to start thinking about Gen Z. This generation is just on the cusp of the age where they think about purchasing a home, but it is important to understand that they are already putting strong value on homeownership.
Unlike the Millennials who came of age during the recession, housing market downturn, and stock market crash, Gen Z is slated to experience better job prospects and higher wages than that of Millennials. These conditions will better prepare them for the burden of student loans and is predicted to push them into the housing market sooner than Millennials.
Access to mortgages will improve
Unlike previous years, where getting a mortgage was difficult for many who wished to purchase a home, there are new programs in effect that will help make it easier for many to obtain loans. Both national and regional lenders are letting up on strict terms for obtaining a mortgage by lowering down payment requirements, stretching the definitions of “income”, raising the debt-to-income ratio requirement, and more.
Last year our blog post, Home Buying Made Easier With New Mortgage Program from Fannie Mae, described what was just the beginning of these new programs being put in place. Now, there are even more lenders participating in programs like this one!
New communities and more options
Many of our new communities will continue to grow over the next year, and we will be introducing a number of new communities in some of the most sought after locations in Virginia and Maryland! As we continue to build new homes with the latest building trends and technological innovations to suit the needs of the modern homebuyer, you can be sure that for Miller & Smith, 2017 will be one of the best years yet!
For more information on all of our brand new homes and communities, explore our website at www.millerandsmith.com!
Sources: marketwatch.com, realtor.com, www.washingtonpost.com