What will Happen in 2017

Millennials and Gen X Renters are now the Buyers

The Great Recession of 2007 was a difficult time for Generation X Americans and their credit scores. This harrowing event not only caused bad credit to stay on one’s FICO score for seven years, but also caused bankruptcy to be visible for up to ten. But now, over nine years later, those who suffered losses will soon be eligible for mortgages.

The Mortgage Bankers Association stated that it is easier now to qualify for a mortgage than it has been in the years since the recession. They project that mortgage rates will stay below five percent in 2017.

Millennials are also showing signs of growth as they are starting to be relieved of their student loans and beginning to move out of their parent’s homes. This increase in the market pool with Gen Xers means a surplus of individuals who have increased motivation to start buying homes.

Midwest is Calling

Big metropolitan cities like Los Angeles and New York may be out of the picture for young homebuyers, but the Midwest is a different story. Attracted buyers are enticed with the ability to purchase affordable homes. Midwestern cities will continue to beat the national average when it comes to millennial homebuyers, who are focusing their purchases near big universities. However, this will lead to price increases across the metropolitan markets.

Renovate While You Can

Ever think of renovating that unit, but never seem to find the right time to do so? Now is the perfect time to do so as it will save you money in the long run. With the new administration policies regarding immigration, the labor market might take a hit. The construction industry will have to tighten their labor-market, resulting in higher wages, which will lead to rising renovation costs. Companies will have to find qualified skilled workers who are asking for higher wages. If you have a renovation in the pipe-line, it might be time to make the job a reality.