A Look Ahead to 2017

Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), gave his opinion of the 2017 national housing market. As we know, many of Pinellas County homeowners are from out of state. What happens in other parts of our nation has an impact on our own real estate market. Realtors and other Real Estate Professionals have good reason to look positively on 2017.

Mr. Yun provided a lot of data in his speech on the economy and the housing market at the 2016 Realtors Conference, that he sees a “net positive” for the housing sector. He said that home sales for 2016 would be the best since 2006, and he expects 2017’s sales to grow by further 2%, and by 4% in 2018.

He also expects 2017’s median home price to increase by 4%. He put this forecast number down to a continually, but gradually, expanding economy, increasing employment rates, and 30 year fixed mortgage rates rising steadily from about 3.8% in Quarter 1 to about 4.4 – 4.5% by Quarter 4.

Mr. Yun expects the problems of tight home supply, and affordability concerns to begin to lose their dominance – both in reality and in people’s minds. Many builders have focused on multi-family properties, and should look more towards single family homes in 2017. This is important because Millennials will, he says, enter the first-time market in greater numbers than they did in 2016.

The median age of first-time buyers is 32, and the number of potential buyers moving into their 30s will get bigger, so they should boost the demand for homes. As a result, housing starts should see a 5.3% increase over 2016, amounting to 620,000 new single family homes being built.

The Take-Away

Mr. Yun is optimistic about 2017. As homeowners who live out of state sell their homes, some will want to move to the sun. PinellasCounty has much to offer, so marketing to out-of-state buyers may well generate good business from people who sell their homes, and want to move to the Gulf.

We have a lot of first class construction companies in Pinellas, so if they increase their inventory, as Mr. Yun expects all builders to, then there should be a steady supply of new homes, as well as pre-owned homes to list and market.

WE, at International Title Partners will not only manage your closings smoothly and without hassle, but we are skilled at dealing with split closings and out-of-state buyers. So as you get into 2017, and you want experts to answer your questions and manage your closings, please just click here to contact us.

As soon as 2016’s stats for Pinellas County are released, we will give you that summary, as well.