Positive Trends in Today’s Housing Market
According to the National Association of Realtors, existing home sales back in October began rising to the highest annual pace in nearly a decade. The cited reasons include that the economy is improving. In 2017, the economy is expected to continue growing, at least at a moderate pace, and this growth will lead to even lower unemployment, which can help boost consumer conficence. Growth in jobs typically leads to more households looking to buy homes. Then we see two other major drmographic shifts that can drive sales in the coming year: millennials and retiring baby boomers. Boomers, the nation’s 2nd largest generation, are now moving into retirement. Americans age 65 to 74 are in a key range where housing decisions are being made, which typically involve home sale and a purchase. Over the next 5 years, the number of people in the U.S. over age 65 is expected to increase 18 percent as the overall population grows only 4 percent. Other factors include a 31 percent fall in the number of foreclosures and a drop of 25 percent in the number of delinquent mortgages. Also, many new homes are in the construction pipeline. Starts rose over 25 percent this past October, reaching an annual adjusted level of 1.3 million the Commerce Department reported. According to the CEO of researcher CoreLogic, we are heading into 2017 with prices, performance and production- the three most important drivers of the real e3state market- are all improving.