Whether your in the market for Colorado real estate or not, if the last quarter of 2016 is any indication of the future than 2017 is sure to be filled with surprises!
One thing that no one expected, from Donald Trump’s win of the 2016 Presidential Election, was a stock market rally and 10-year Treasury bill rate increases. In 2016, low-interest rates and improving wage growth helped boost the U.S. Housing Market.
However, as of November 25th, the 10-year Treasury rate grew to 2.36 percent, up from 1.83 percent the day before the election. This has increased the national average of a 30-year fixed-rate mortgage to 4.02 percent, up from 3.47 percent, for the same period. However, this is not the only national trend that will affect real estate in 2017.
2017 Real Estate Trends
1. Walkable Communities – Simply put, a walkable community is one that is friendly to walk. Notwithstanding, much of this real estate trend is driven by a desire to live in a healthy and environmentally sustainable town or city. Buyers are seeking neighborhoods in which there is a reduced reliance on automobiles, with easy access to work, shopping, and entertainment.
2. Use of Unmanned Aerial Vehicles – Proficient real estate agents are always looking for new technologies and ways to make properties stand out. Since the advent of the internet, there have been many new ways to present homes for sale, and having them stand out in the crowd. A growing new real estate trend is the use of drones to create aerial video tours of properties.
3. The End of Starter Homes – A growing number of Millennials, those born between the early 1980s and the late 1990s, are anticipated to acquire their first house in 2017. The housing crash caused many to become hesitant to buy. However, the delay into the market has empowered many to prepare by paying down student debt and saving for a down-payment. The resulting real estate trend is that many are choosing something more than just a starter home.
4. Increased Mortgage Rates – As stated, the Trump Presidency has started to push the interest rates up for fixed-rate mortgages. This is because of the link between fixed-rate mortgages and the 10-year Treasury. However, adjustable-rate mortgages are more closely linked to the Federal Reserve rate. The Fed just raised rates in December and experts predict this real estate trend will continue to slowly raise rates through 2017.
5. Easier Mortgages – According to the Mortgage Credit Availability Index, acquiring a mortgage loan is easier today than it has been for the last 8 years. This is a result of more availability for low down-payment loans and jumbo loans. Banks are starting to loosen up and seem more willing to work with buyers. As the economy continues to grow, this trend should continue.
We expect the strong Colorado housing market to be one of the real estate trends that will continue in 2017. With rents and home prices both on the rise it will be a challenge for buyers and renters as sellers and Landlords will stay in the driver seat.
As we embark on an exciting new year here at Housing Helpers Colorado we wish all of our friends and clients peace, prosperity, and our sincere thanks. We look forward to helping you with your real estate needs in 2017!