Realtor.com just released their 2017 market forecast for the year ahead. Riverside is on the list to be a top overall market in the country!
“The top 10 markets all benefit from strong growth dynamics: population, jobs, and households.” Says Jonathan Smoke, realtor.com’s chief economist, who analyzed the country’s 100 largest metropolitan markets for their growth potential. “They all have low unemployment that’s heading lower, which buoys consumer confidence.”
The article states that of the top 25, 5 markets where right here in California.
Here is the info-graphic from the article
Riverside Listed Top 5
Not Shocking News
Consequently, Riverside California cracked the top 10 at number 5. Riverside had a price growth of 4.98% and sales growth of 6.88%. This is not that most surprising news. We all know the issues with inventory and new housing developments are not keeping up with demand. The markets that make the top 25 are the ones that can manage the shortage a little bit better.
The article goes on to talk about the top housing trends they predict for 2017. Do you agree with all of them?
Top Housing Trends for 2017
1. Millennials and boomers will dominate the market
Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers . That will power demand for at least the next 10 years. Although increasing interest rates have prompted realtor.com® to lower its prediction of millennial market share to 33 percent of the buyer pool; millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent of buyers in 2017, given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.
2. Midwestern cities will continue to be hotbeds for millennials
Midwestern cities are anticipated to continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack. This year, average millennial market share in these markets is 42 percent, far higher than the U.S. average of 38 percent. With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com® expects this trend to continue in 2017 even as interest rates increase
3. Slowing price appreciation
Nationally, home prices are forecast to slow to 3.9 percent growth year over year, from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point or more with Greensboro-High Point, N.C.; Akron, Ohio; and Baltimore-Columbia-Towson, Md., experiencing the largest gains. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more. Lakeland-Winter Haven, Fla., Durham-Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation.
4. Fewer homes on the market and fast moving markets
Inventory is currently down an average of 11 percent in the top 100 metros in the U.S. Median age of inventory is currently 68 days in the top 100 metros. Which is 14 percent – or 11 days – faster than U.S. overall.
5. Western cities will continue to lead the nation in prices and sales
Finally, western metros in the U.S. are forecast to see price increase of 5.8 percent and sales increase of 4.7 percent. These markets also dominate the ranking of the realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramento and Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo-Orem, Utah; Seattle. and Oxnard-Thousand Oaks-Ventura, Calif.) – Source