December 19, 2016
Here we are yet again, at the end of the year and very ready for the new one! In following our annual tradition, we've put together the list of the some of the most important statistics to keep in mind for the Real Estate industry and things we think that real estate professionals should be aware of as they move into a brand new year.
After what felt like a very turbulent 2016, we're facing a new year with a new President here in the US and plenty of questions as to how the election may or may not affect the housing industry. But, we'll let the numbers speak for themselves!
Take the time to look over the stats and give them some thought. How can you use them to your advantage this year and how can you implement their implications into your strategy for the new year. As our CEO, Zvi, recently advised in his latest EPIC webinar, this year you ought to be focusing on setting better goals and strategies, rather than lofty resolutions that often get forgotten by March. How will you make the numbers work for you, this year?
Ready to start strategizing? We're breaking down the statistics we think will be the most relevant for the real estate industry in 2017 and what their implications could be for you and your business. Take some notes and then let us know how they could affect you this year.
1. Millennials will make up 33% of homebuyers in 2017. Tweet this stat.
This stat is pretty impressive and should help inform your marketing and business strategy overall in the coming year. Millennials are a whole new generation of buyers and need to be marketed to as such. Check out our guide to marketing to Millennials and change up your strategy.
2. 17% of under 35 year olds were able to save for down payments in 2016, which means they will make up more of the buyers in 2017. Tweet this stat
This goes hand-in-hand with the first stat and further informs us as to why so many Millennials are shifting to buy in the coming year. Now they have the cash to finally leave their parents' homes and start their own!
3. 80% of residential growth will occur in suburban markets starting in 2017. Tweet this stat
This has major implications for the future of 'surburbia' where it's expected that community amenities and housing options will become big areas of growth for those dense areas outside of city centers. What does this mean for you? Keep an eye out for that new construction, trendy restaurants and coffee shops popping up and have those neighborhoods on your radar. The pricier it gets for folks to move into the city, more of those amenities will be headed to the suburbs to meet new residents' needs!
4. The US economy is expected to grow at an average of 2.0% in 2017 and 2018. Tweet this stat
Realtor.org reports that the economy is on the up and up in the coming year. What does that mean? Well it certainly could imply that despite the rising home costs, there will be more buyers out there benefitting from the economic growth and able to afford the increased prices.
5. In 2016, only 62% of all new and existing homes sold in the second quarter were deemed 'affordable' to the median US household. Tweet this stat
What does that mean for 2017? Well, with home prices rising at an expected 5% annual rate, it could mean that the percentage of homes affordable for average home buyers in the US could continue to decrease, leaving more middle class Americans struggling to buy a home in the coming year.
6. Mortgage rates are expected to gradually rise in 2017, but remain below 5%. Tweet this stat
Despite the rising home prices, it's expected by the Home Buying Institute, that mortgage rates will remain fairly low in the coming year. Leading us to believe that for the time-being it will remain reasonably affordable to own a home with the help of a mortgage.
7. Nationally, home prices and appreciation are expected to slow to 3.9% growth year over year, from an estimated 4.9% in 2016. Tweet this stat
Realtor.com found in their trends for 2017, that home prices in the US will moderately slow down in the coming year, making each
8. While ownership is falling, renting is on the rise, with a 2.3% increase in renters in the US in 2016 and it's expected to continue rising well into 2017. Tweet this stat
For those Millennials still looking to save up to purchase their first homes (and not living with their parents), they'll be renting. But this extends far beyond Millennials just entering the market, with home prices rising to nearly unaffordable prices, HUD reported that more families and others will be looking to rent homes. Does your 2017 strategy include renting instead of just buying and selling homes? It may be the year to reconsider...
9. 84% of all buyers this year utilized information they found online a crucial part of their home search. Tweet this stat
This continues the trend as reported by NAR that more and more buyers are turning to the Internet as their first step in their home buying process. They're looking for photos and they're looking for detailed information on the homes they're interested in and most won't even go see or walk through a house if they aren't able to find that information online first. If you aren't promoting your listings fully online, you may be missing out on huge chunk of business.
10. 89% of Millennials, 87% of Gen X buyers, and 85% of Younger Boomers purchased their home through an agent in 2016. Tweet this stat
NAR's generational report proves that people are still looking for the expert help of real estate agents for the buying and selling process and it's not expected to change much in the coming year. Making yourself more available and marketing your services and business to these subsets of folks on the market will only help give you a boost in 2017!
11. 13% of home buyers purchased a multi-generational home in 2016. Tweet this stat
NAR reported this interesting stat and added that many of these home buyers were looking for these larger homes in order to take care of aging parents, for cost savings, and because children over the age of 18 are moving back home.
Catering to Millennials or branching out into surburbia in 2017 are two big takeaways and trends that are looking like 'musts' to add to your strategy in the New Year. How will you implement them? And if you're looking for better ways to achieve your goals in 2017, check out CEO, Zvi Band's #EPIC2017 webinar, it's sure to get you fired up and ready with a new plan for success.