Millennials Will Enter Into The Market
The first and most key prediction for 2017 is the fact that property buyers will increase by a substantial margin due to the demographic wave in the U.S. This demographic wave involves millennials finally reaching a certain age when they start considering purchasing property for themselves. This one of the largest generations in American history and some studies suggest that this generation will comprise 35% of the property that will be purchased in this year. By taking this into perspective it is safe to say that the amount of potential buyers in the market will increase.
Millennials Will Target The Mid West States
Since it has been ascertained that the amount of potential buyers in the market will increase, it is imperative to understand where these individuals will invest in. Since this generation has recently reached the life stage of considering purchasing property, a substantial portion of these buyers will have limited capital. These millennials will have no choice but to invest in property present in Mid West states such as Madison, Omaha and Minneapolis. These states provide buyers an affordable market and besides this many boomers have depicted a trend of investing in property that is in proximity to their respective universities.
Price Appreciation Will Slow
Yes, you read that right, price appreciation will slow down as numerous forecasts show that prices will increase at a steady rate of 3.9%. Last year the price appreciation was 4.9% which is exactly why so many people diversified into the real estate market as prices were increasing at a prosperous rate. The reason behind this reduction in price appreciation is due to the fact that 2016 has been an outstanding year in the housing industry as many innovative techniques have been introduced to construct homes in a cost effective manner including 3D construction. This will increase the supply of homes, which will help stabilize the market trends.
Digital Real Estate Marketing
Another factor that should be taken into consideration is the progress of technology. Last year, a myriad of applications and tools were introduced into the real estate market. These tools have been brilliantly engineered to perfection as they are designed to assist residential developers. These applications have become a crucial component of the real estate industry as sellers finally have a solid platform to market their properties directly to the end users. Although these tools have been present for some time, it wasn’t till last year did they find they stride as more people have now become aware about these versatile tools and applications.
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