Real estate is a big deal, for individual homeowners and for the economy as a whole. Housing can be counted as 15% of GDP. In the wake of the real estate bubble, lending standards have remained tight, so real estate figures haven’t done all that much. Those who survived the crisis have been reluctant to replenish their work but things are looking like they’re changing.
There are signs that these trends are about to change. As the new year rolls on, we’ll fill you in on the health of builders and other key trends to watch below.
The Real Estate Trend You Need to Understand for 2017?
According to Forbes, your best move in 2016 is going to be a lot different this year.
Inventory has tumbled among less expensive homes, and your money may not buy as much as you expect. For example, if you’re a growing family, it’s a good time to make a move.
Over the five years between 2011 and 2016, the average price on a two-bedroom house climbed 59% nationwide, while four-bedroom houses rose a more modest 41%.
You’re in the housing market’s sweet spot if you’ve been thinking about moving to a larger home in the first part of 2017. Inventory has also risen at the higher end of the market, climbing almost 8% for homes in the $500,000 to $750,000 range.
Be flexible if you’re thinking about scaling back.
Especially if you’re a first-timer looking for a starter home the more flexible you are, the more choices you’ll have. The average price per square foot in overall metro areas has risen 52% over the past five years, according to Redfin, but it has jumped 76% in the urban cores.
Ready to retire? There are now bigger variations in retirement destinations and U.S. metropolitan areas like Greensboro, NC, where home prices have dropped 0.3% over the past year.
If you’re ready to buy, now is a good time to secure a lower loan rate According to president of Atlanta-based PrivatePlus Mortgage, average rates could rise as much as half a percent in the next year.