Goodbye 2016! If you have been watching social media, 2016 is already a thing of the past;
people really seem to want 2016 to expire quickly and quietly. However, 2016 in the real estate
world was pretty awesome and many of the trends are expected to continue. We do look forward
to 2017, and here are a few of trends that we think will encourage you as well in the next year (as
shared by Fiscaltimes.com).
Easy Mortgage Approval
Fiscal Times noted that the Mortgage Credit Availability Index surveys show that it has been
easier to get a mortgage in the past eight years than in the year prior. Banks have become more
willing to work with borrowers, and this trend is expected to stay steady over the next few years.
Banks are also seeing more first time home buyers step up to bat, and are willing to help secure
mortgages for them as well.
According to Fiscal Times, there has been a decline in refinancing business as interest rates go
up and people become more secure in their employment again. Also, the Millennial generation is
hitting their stride in their careers, showing credit stability and job security. They are ready to
buy their first homes. Lastly, Fiscal Times points out that many institutional investors are
stepping away from real estate, making it easier for first time home buyers to compete for
Small Houses Wanted
While “tiny houses” look like a super fad, smaller homes really are wanted. Several trends in the
real estate market point the way to smaller homes. These include homes closer to urban areas,
first time home buyers, affordability and, of course, the influence of minimalism in the “tiny
house” movement. These factors are changing the size of new homes – the average square
footage for new homes fell in 2016. Builders are paying attention and working to build homes
for the entry-level and small home buyer.
Tight Inventory Expected
While builders are pounding out entry level and smaller homes, Fiscal Times mentions that
builders are only working at about 60 percent of expected capacity. September 2016 showed a
new housing increase of 1.5 percent, 7 percent lower than September 2015. The biggest marker
was unsold housing in September 2016, with available new homes falling from 4.6 percent to 4.5
As stated above, these are just a few of the many trends in real estate for 2017. These trends are
expected to be national; however, in our own area of Northern Virginia, we have seen local and
regional trends that rival the national averages. If you are interested in learning more about our
area’s trends and why Northern Virginia is the place to live and raise a family, we would love to
have you contact us. We can answer all your real estate questions and find you the home of our
dreams in 2017.
Happy New Year!
Chris Colgan is the CEO and Team Leader of the Chris Colgan Real Estate Team. Chris
was born and raised in Gainesville, Virginia and has been in real estate for 10 years. He is a
member of the Re/Max Hall of Fame and is in the top 25 for sales in the state of Virginia out of
all Re/Max agents. He has been recognized as one of the United States’ and Canada’s Top
500 Marketing Experts by the National Association of Expert Advisors.