3 Reasons We’ll See a Strong Housing Market in 2017

After the Great Recession hit in 2008, many people wondered if they would ever be able to recover. Now, nearly ten years later, the housing market is looking stronger than it has in a long time. While buyers suffered in 2016 from a sharp rise in home prices, experts expect price growth to decline in 2017. Such a decline would be a welcome relief for potential home buyers who aren’t looking to spend a fortune on their dream home.

Housing Forecast predictions

According to experts like senior economist Joe Kirchner at Realtor.com, 2017 will be a year of slow but steady growth in the housing market. Existing home sales are predicted to increase 1.9 percent to 5.46 million homes, while home prices are expected to increase 3.9 percent. This increase is considerably lower than the sharp 4.9 percent increase of 2016, and will allow the new home sale to grow to 10 percent.

Still Far From Prerecession Levels

Though many experts are warning that higher interest rates may price some buyers out of the market, others don’t believe the problem will be as dramatic. Now at 4.3 percent, the interest rate could be increased by the Fed multiple times before it even begins to approach its prerecession levels of 6.73 and 6.8.

Excellent Loan Options

Home buyers can select from a few different loan options. Right now, both FHA and conventional loans offer unique benefits to buyers. FHA loans are especially popular among younger buyers, and since experts predict that millennials will dominate the housing market in 2017, FHA loans might prove more valuable than ever before. They only require 3.5 percent down payment and can work with buyers whose credit scores are as low as 580. Conventional loans, on the other hand, are the most common and accept a wide range of down payments.

Only time will tell, but all housing experts are rooting for a strong housing boost in 2017.