Redfin Experts Offer Seven Real Estate Predictions for 2017
SEATTLE — Dec. 13, 2016 — In the new year, home price growth will hold steady and homes will sell even faster than they have this year, making 2017 the fastest real estate market on record, according to Redfin (www.redfin.com), the next-generation real estate brokerage. Redfin data scientists and thought leaders put their heads together to predict what the housing market has in store for the new year, under a new president.
"Next year, the new administration will lead a shifting U.S. economy,” said Redfin chief economist Nela Richardson. “Baby boomers will become less economically relevant as millennials continue to come of home-buying age. Superstar cities will create much of the job growth, pushing wages in those cities up. Yet the percentage of homes in America’s largest cities that are affordable on the median income has declined the past two years and will continue to fall in 2017. Sales would be even stronger if there were more starter homes on the market to meet demand from millennial homebuyers. We expect to see more homes built in second-tier cities and more millennial homebuyers moving from the coasts to smaller and inland markets where they can find affordable starter homes."
Redfin’s Seven Housing Predictions for 2017:
- The housing market will continue to grow, but at a slower pace due to affordability pressures. The percentage of homes in America’s largest cities that are affordable on a median income has declined the past four years and will continue to fall in 2017. Even with rising affordability pressures, Redfin predicts:
- Median home sale prices will increase 5.3 percent year over year, similar to the estimated 5.5 percent this year.
- Existing homes sales are forecasted to increase 2.8 percent in 2017, compared to the estimated 3.4 percent increase in 2016.
- Inventory will recover slightly, up 1.7 percent year over year, after falling an estimated 3.4 percent in 2016.
To read the full set of predictions, complete with expert analysis and detailed data, please visit:
About Redfin Corporation
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the highly accurate automated home-value estimate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $31 billion in home sales and saved customers more than $335 million in fees through 2015.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center.
Redfin Journalist Services: Alex Starace, firstname.lastname@example.org, 206-588-6863.
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