People in California who are thinking about buying real estate in 2017 may want to look at some of the trends forecasts for the coming year. Recently, an economic team looked at key economic indicators and market data and used it to come up with a list of trends for 2017. The team predicted that price growth will be moderate, and some buyers will be priced out of the market by higher interest rates.
The presidential election has already had an effect on residential real estate markets in the U.S., but the impact that a Trump presidency will have on the markets is yet to be seen. Since the election, interest rates went up by 40 basis points, indicating that the record-low interest rates that buyers have enjoyed are coming to an end. Rising interest rates will likely affect the 95 percent of first-time home buyers that need financing.
According to the 2017 trends forecast, there are demographic factors that will affect real estate markets in 2017. Two large generations, the Baby Boomers and the Millennials, are entering life stages that tend to trigger home purchases. A lot of people who are getting married, having children or retiring will be looking to purchase new homes. The youngest home buyers are more likely to look for homes in affordable Midwest cities than in expensive markets.
A person who is thinking about purchasing a home or investing in commercial real estate in 2017 may want to speak with an attorney before going forward with a purchase. An attorney may be able to investigate a potential real estate purchase and determine whether there are any title issues or zoning laws that could cause problems later on.