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With continuing home price appreciation, many current homeowners will finally be convinced to sell and make the move up the real estate ladder, leaving many low- to middle-tier homes available for the burgeoning Millennial Generation.
Most families and move-up buyers look to close before the new school year starts. Their diminishing presence from the market means even more opportunities for buyers.
Many buyers could have some negotiating leverage with sellers who would rather not wait another six months.
The new home market is also heating up for any buyers having trouble finding dream homes among existing inventory.
Analysts expect new construction to increase to historic levels by 2017. Buyer’s agents can take the Certified New Home Specialist educational courses through the Council of Residential Specialists; helping clients with legwork, figuring out the fair market value or even negotiating.
As builders adjust in response to rising demand for entry-level homes, typical new home size is likely to trend lower going forward, which should help to sustain the home-buying recovery.
To put a bow on all this positive news, the NAR, Fannie Mae, Freddie Mac and the Mortgage Bankers Association are forecasting existing home sales in 2017 could reach a record-shattering 6.5 million.
Home prices have climbed to some of their strongest numbers since the pre-recession peak, but there’s no guarantee favorable conditions for borrowing will continue. Improving access to mortgage credit is still a fundamental hang-up.
Hopefully the incoming presidential administration will be able to nudge the GSEs to take steps to ensure prospective credit-worthy buyers are able to enter the market.
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