New Homes Forecast for 2017

The real estate market is a liquid thing; it's constantly shifting and moving. In 2017, it is expected to be no different. But, there are some factors that are shaping up to solidify, thus allowing experts to make their new homes forecast.

If you're planning on moving into a new home this year, then here is what the experts are forecasting for the housing market in 2017.

The Western Part of the U.S. is Expected to Lead in 2017

The western part of the United States is shaping up to lead the real estate market in 2017, especially western metro cities. Homes in those areas are expected to have a price increase of 5.8% and a sales increase of 4.7%. In comparison, the rest of the country is expected to average a home price increase of 3.9% and a sales increase of 1.9%.

Top 10 Metros in 2017

According to Realtor.com, the top ten metros in 2017 are expected to be:

  1. Phoenix/Mesa/Scottsdale, Arizona
  2. Los Angeles/Long Beach/Anaheim, California
  3. Boston/Cambridge/Newton, Massachusetts
  4. Sacramento/Roseville/Arden/Arcade, California
  5. Riverside/Ontario/San Bernardino, California
  6. Jacksonville, Florida
  7. Orlando/Kissimmee/Sanford, Florida
  8. Raleigh, North Carolina
  9. Tucson, Arizona
  10. Portland/Vancouver/Hillsboro, Oregon

Home Ownership to Stabilize but Interest Rates Climb

In 2016, home ownership bottomed out at 62.9%, but in 2017, home ownership is expected to stabilize at 63.5%. New home sales are expected to grow by 10%, while new home construction is expected to increase 3%.

With 2016 being an election year, the housing market experienced a 40 basis points increase in rates immediately after the election. This resulted in interest rates being raised. And, with more than 95% of first-time home buyers relying on financing their home purchases and a majority of potential home buyers having one or more financial challenges, the increased interest rates may be too much for them to overcome, thus reducing the number of qualified buyers this year.

Top 5 Housing Trends in 2017

With the rise in interest rates, 2017 is set to see a changing buyer demographic and this will impact the year's housing trends. The top five housing trends expected to affect the market this year include:

  1. The market will be dominated by baby boomers and millennials
  2. Home prices are going to climb, but slowly (a national average of 3.9%)
  3. There will be approximately 11% fewer homes on the market in 2017
  4. Western metros will lead the market in sales and prices
  5. The Midwest market will be fueled by millennials

Southland's Custom Home Builder in GA Can Help You Get the Home of Your Dreams in 2017

Are you looking to move to Georgia or buy a new home in the state in 2017? If so, then why not have a home custom designed and built precisely for your family's unique wants and needs? At Southland Custom Homes, our home builder in GA can design and build you the home of your dreams at a price that rivals that of buying an existing home.

Don't settle for someone else's idea of the perfect home; get the home you have always wanted. Call Southland's custom home builder in GA today at 866-56-BUILD to get started. Or, visit one of our model showrooms today in Macon (3956 Bloomfield Village Drive, Macon, GA 31206), Dawsonville (98 Bethel Drive, Dawsonville, GA 30534), Marietta (265 N. Cobb Pkwy, Marietta, GA 30062), or Winder (429 Loganville Hwy., Suite 101, Winder, GA 30680) to see all that we have to offer!

Southland Custom Homes builds in the following locations:

Chattooga County
Crisp County
Dodge County
Emanuel County
Fannin County
Franklin County
Greene County
Habersham County
Hancock County
Harris County
Hart County
Heard County
Johnson County
Laurens County
Madison County
Marion County
Meriwether County
Murray County
Oglethorpe County
Rabun County
Schley County
Stephens County
Sumter County
Talbot County
Tift County
Towns County
Treutlen County
Troup County
Turner County
Union County
Wilcox County