Millennials are about to take over the 2017 real estate market. At least that’s what many have predicted will come as a big wave for the industry’s first-time home buyers. Individuals looking to buy their first home will have increased to 50% in 2017 compared to the 33% in 2016. Of those buyers, 60% are under the age of 35.
Redfin.com’s president of real estate says, “First timers are looking for high-end features and amenities in their starter homes. Millennials especially are looking for high-quality appliances and other finishes in exchange for giving up the flexibility that comes with renting.”
With the coming year, government-backed mortgage companies such as Fannie Mae and Freddie Mac will back mortgages of up to $424,100 in contrast to the previous $417,000 allowed. This increase in loan limits might appeal to first-time homebuyers as government-backed mortgages are often looser. Expect competition to grow fiercer for more affordable homes in the suburbs.
Want to know where millennials are headed to buy homes? – Head west. Western cities will continue to lead the pack and account for 11 of the top 25 markets from Realtor.com data. Top markets for home buying offer low unemployment, affordable rental prices and have larger numbers of millennial and baby boomer residents. Many of these booming markets are considered retiree and tech towns.
The top 10 predicted housing metros in 2017 from Realtor.com:
Phoenix boasts stunning landscapes with easy access to outdoor activities such as hiking, camping and mountain biking. Prices are expected to grow 5.9% with sales rising 7.24%.
Los Angeles, CA
The City of Angels is a collaboration of independent artists and business owners, movie stars and juice bars. Prices will increase 6.9% and sales will come in at 6.0%.
Boston offers a small town feel with the perks of city living. It is also home to U.S. history’s most significant social, cultural and political moments. Prices will increase 6.1% and sales will grow 6.3%.
Technological and cultural development paired with reasonable costs of living help contribute to growth in California’s capital city. The farm-to-fork movement is centered here and offers an array of nearby farms and wineries. Prices will increase 7.2% and sales are expected to grow 4.9%.
Home to many historical attractions in the Inland Empire metropolitan area, Riverside is centrally located to many southern California areas. Prices are expected to grow 5.0% with a sales growth of 6.9%.
A city of swimming, surfing and many cultural offerings alongside a low cost of living attract many to the sunshine state. Expect prices to rise 4.2% and sales to grow 7.6%.
Sunshine, a diverse population and year round recreation make Orlando an inviting place to put down roots. Prices will rise 5.7% and sales will grow 6.1% along the sunny coast.
Strong job growth and a young, diverse, educated population is bringing many to this part of the Research Triangle. This green space metro area will see prices rise 4.2% and sales grow 7.6%.
Tucson has a modern downtown with forested mountains surrounding the city. This inviting landscape will see prices rise 6.1% and sale grow 5.5%.
Portland is a center spot for Pacific Northwest living with its parks, eco-friendliness and thriving art scene. Expect prices to rise 6.6% and sales to grow 5.0%