Are you thinking to buy or sell your home or property this year? Wondering what aspects should you consider while selling or buying a home? No matter what your real estate goals, it’s good to learn everything you can in order to make the best deal. According to a few economists in 2017 mortgage rates are to rise, potentially making it more difficult for prospective homebuyers to be able to afford the home of their dreams. But, don’t fret! The expectation of increase in the mortgage interest rate is no higher than 4.3 percent on the 30-year fixed rate. Breathe a sigh of relief, yes! Here are a few other trends to taken into account while featuring your home for sale in La Mirada.
Millennials and Boomers Has Got More to Play
As the previous generation of millennials push into their mid-30s, many will start to settle down and buy houses. In 2017, both millennial and first time home buyers have more cards to play. So, while creating a marketing strategy for selling your home focus on these audience communities to reap more benefits. Many researches also show that many boomers are opting not to move to traditional retirement hot spots like Arizona and Florida, instead choosing to move closer to family.
More New Homes
A recent data on new home construction shows, “Builders pulled back on new projects in November, the overall trend in home construction are clearly positive, with the average annual rate of new groundbreakings reaching a 1.163 million rate so far in 2016, up about 5% from 1.108 million in 2015.”
This is expected to continue in 2017 because higher wages, looser credit and increased demand from buyers have encouraged home builders to invest on new homes.
Rise of Medium-sized Cities
As people flock to top-tier economic cities like New York, Seattle, and San Francisco to seek high-paying jobs, the property value is keeping on rise in these locations. This makes younger folks to find themselves attracted to medium-sized cities, which may not have the same professional opportunities as their larger counterparts, but provide housing affordability.
Improvement in Rental Affordability
Experts also predict that renting will become more affordable in 2017 compared to the previous years. It’s also estimated that rental rates will rise only about 1.5 percent in 2017. With the supply of houses for rent La Mirada CA is keeping on increasing and as many renters have doubled up with roommates, there is a steady rise in the supply to meet the rental demand.
Even though mortgage rates may rise, mortgage credit will likely be more widely available due to slightly looser lending standards. Also, foreign buyers who have helped fuel the luxury real estate market in recent years will play a small role and backed off a bit due to rising prices and increased scrutiny from the Treasury Department.