Real Estate Statistics for 2017

Ever wondered how well the real estate industry performs each year? We aren’t talking about the number of properties sold or the amount of money changing hands. We are talking about millennials as homeowners, residential growth, United States economy, mortgage rates and many other statistics. Let’s take a look at the statistics for 2017 below.

Millennials Making Moves

Millennials are expected to make moves in 2017. Experts believe that 33 percent of homebuyers this year will be millennials. This is significant because just as late as 2016, experts said that more millennials were living at home longer instead of buying a home. Could this become a trend? Or is it a one-year phenomenon? Only time will tell.

Suburban Markets Expanding

The year 2017 will be a big one for suburban markets as 80 percent of residential growth will occur in these areas. As the cost of living in the big city continues to skyrocket, people will move to the suburbs for more amenities per dollar they are spending. Don’t be surprised to see coffee shops, trendy restaurants, and new construction begin to pop up in the suburbs this year.

Economy to Expand

The United States economy is expected to grow by two percent in both 2017 and 2018. Even though home prices continue to rise, people will likely be able to afford those prices due to the improving economy.

Increase in Mortgage Rates

In 2017, mortgage rates are expected to rise, but not far enough to price many buyers out of the market for owning a home. Even though mortgage rates are expected to rise slightly, they should remain below five percent.

Renting Continues to Rise

Believe it or not, renting continues to rise. In 2016, the United States saw a 2.3 percent increase in renters. This trend is expected to continue well into 2017 and maybe even 2018. Home ownership continues to drop alongside the rise in renting.

Multi-Generational Homes for Sale

In 2016, 13 percent of people who purchased a home bought a multi-generational home. The reason for such a large percentage here, is that the homebuyers can see the affordable costs of having aging parents move in with them and having children over 18 move back home.

Online Information is Crucial to the Industry

The internet has become a trusted source for various industries and the real estate industry is no exception. In 2016, 84 percent of homebuyers used information they discovered on the internet to help them make a purchase decision. Many buyers used the internet as their first source of information when entering the market. They looked for photos and other information from online listings before meeting with an agent. Many buyers use the information found online to determine whether or not they will even visit an open house. If they can’t find a listing online, it’s likely the buyer won’t take the time for a tour.

Have questions about the value of your property in New Jersey? Contact the friendly and experienced staff at Brightstar Realty. You can reach the office by calling 973-226-4900 today.