The first month of 2017 is coming to an end and there is much to expect in this years as far as New Braunfels Real Estate Market is concerned. Although predictions can be made about what will happen throughout this year we can’t be sure of how things will turn out in the real estate market. The fact that a new president is being sworn in makes it even harder to know what is going to happen in the remaining months of the year. However, some of the things that are likely to happen include:
- The market will be dominated by millennials and baby boomers
The millennials and baby boomers form the demographic groups that will be the big buyers in the real estate market. Experts predict that 30 percent of buyers in 2017 will be the baby boomers.
- There will be an improvement in Rental affordability
The increase in the supply of rental units and apartment buildings across the country will result in a decrease in the increase of rental prices. Zillow predicts an increase in rental rates by only 1.5 percent this year. Rental affordability is, therefore, going to improve.
- Mortgage rates will increase
Although mortgage rates have been low since the 2008 recession things might change in 2017. Mortgage rates will start increasing as the real estate market normalizes. Those planning to buy homes this year should act early when the rates are still low.
- Millennials will settle down in the Midwestern cities
According to experts, cities in the Midwest will continue to be hotbeds for millennials. Some of the predicted cities include Columbus, Minnesota, Minneapolis, Madison, Ohio, and Des Moines. More millennials are expected to move and settle in this cities.
- Prices for New Home Builds will increase
The construction industry is experiencing a shortage in labor and experts say that the real estate market might experience an increase in the prices of new home builds this year. This is because construction companies are now paying higher wages to their employees due to competition.
- Home values will slightly increase
According to experts, the national home values will increase by about 3.6 percent, slightly less than in 2016 when it rose by about 4.9 percent.
It is important to note that all these are predictions and it is uncertain what New Braunfels Real Estate Market will do throughout this year. The best we can is to wait and see what happens.