The end of 2016 maybe a boon for the year 2017. As we look toward the start of a new year let’s explore some trends that will affect the real estate market across the country.
Donald Trump, who is a real estate magnate himself, won his bid for the white house. The stock market has already been teetering toward 20,000 since his win. We also saw some nice rises in home values over 2016 bolstered by low interest rates, lower gas prices, some strong wage growth and the fact that our younger millennials are now entering the real estate market and buying homes. Here are some trends to look for.
- Use of drones expanding. With the regulation change made by the FAA which we covered in a previous blog (To Drone or Not to Drone, that is the question July 2016) be looking for real estate agents to take advantage of this unique item. It is changing the old saying of location, location, location into perspective, perspective, perspective. Properties that have more land or have interesting views are great candidates for drone overflies. They are easy to operate and not that expensive.
- Surban. A new term that is being applied to mixed-use developments that blend urban and suburban amenities in one. In Surban living, it will be possible to walk to work as well as walk for groceries, to entertainment, schools and family-friendly parks. These “new” neighborhoods are meant to be inclusive, not exclusive and affordable to blue collar workers. They are also enticing to millennials who have paid down their student loans and been able to save a bit for down payment.
- Trump’s Win. A Trump administration could prove good for real estate. Mr. Trump is already interested in lessening the regulations governing the financial services industry which may allow homebuyers who can’t qualify under the harsher rules today to buy in the coming years. Home buying should remain very strong in 2017 since only short term interest rates have gone up. The outlook is the marketing will remain a seller’s market but look for interest rates to change as Mr. Trump’s economic plans take flight. The Fed will want to keep inflation in check.
- Generation Z, The Future Buyers. The first crop of Generation Z will turn 18 in 2017 and they will come of age with low interest rates, increasingly better job prospects and probably higher wages to help offset the cost of education. And it seems that 97% of this age group want to own a home. Most are wanting larger homes than what they were raised in with more room for their families. So look for this age group to be a bit more prepared to buy a home in the coming years.
A final note about the economy, I just reviewed an article about how the Dow is still pushing toward 20,000. It seems the holiday shopping season was a lot stronger than retailers (i.e., Amazon, Wal-Mart) anticipated which in turn has raised the stock in retailers (Amazon up 1.7%, Wal-Mart up 0.1%). Since the election, the DOW has risen 9% with a year-to-date change of 14.6%. The S&P 500 and the Nasdaq are also up.
On another note, here are some places where it is suggested you not spend your money.
- Subscription “surprise” boxes.
- Fast fashion clothing.
- Recalled toys online.
- Ear bud headphones with wires.
- Smart refrigerators.
- Foods that claim to be healthy.
- Event tickets from resale sites.
- Celebrity fashion labels.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.
For additional events happening in and around Greenville during the month be sure to check out our Facebook page @VictoriaCottlesCorner.