7 Real Estate Market Trends in 2017

A diagram of the factors that can affect real estate property values in vector format.

#1 Home Values will increase.

For a time, as the market has been recovering, we were seeing very high home-value appreciation rates.  Expect more historically normal appreciation rates. As the market continues its recovery, appreciation will slow down which is a leading indicator of a normalizing, or balanced housing market. Home values will increase in moderation, vs. the past two years.

Golden Gate Bridge San Francisco CA

#2 N. California will lead the price increases.

Northern California has experienced the most significant job growth since the end of the recession, followed by Portland, Seattle, Denver, Phoenix and Tucson. We will see increasing demand for homes as population growth follows job growth beyond the market’s ability to build inventory. This should continue to push prices higher still.

Savings, increasing columns of gold coins, red purse and green plant isolated on white background

#3: Cities face an affordability problem.

A lot are addressing this by building smaller homes — which take up less space and by developing additional public transit to the developments. But, what if a backyard, more space and room to breathe is what you crave?

A house in the suburbs

#4 Buyers are flocking to the “burbs.”

People would still like to live close to the city where they work and they’re close to amenities and in walkable neighborhoods, but currently many folks in S.F. are not able to find enough inventory. And, many of the properties that fit their ‘wish-lists’ are not affordable for them to buy.

friendship, leisure, summer and people concept - close up of Millennials

#5 Millennials are on the move.

More jobs are being created for the 30-somethings, with rising wages. This demographic group also has marriage and children on their minds and this is driving them to buy a home with room to grow.

baby boomer couple

#6 Baby Boomers are downsizing…or are they?

Many boomers are looking to move when they reach retirement. Some wish to downsize to simplify life due to financial or physical needs. However, many are also buying-up to accommodate kids and grandchildren when they come to visit. And, the boomers are no longer flocking to AZ and FL like they used to; family is what they want to be closer to.

Growth of real estate market hand drawn in chalk on a blackboard vector white icon isolated on a green background.

#7 Rates are increasing.

After the housing market crash, interest rates have remained historically low for years. This is now changing, with the Feds planning on three more rate hikes in 2017. If you are a buyer or a seller, the time to act is NOW. Rates will go higher and inventory is not expected to improve. So, Winter/Early Spring is the time to get moving!

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Walnut Creek Home Seller – Mona W.

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Need to find a real estate agent near Walnut Creek CA? Dayna Wilson serves the East Bay communities of Orinda, Lafayette, Moraga, Walnut Creek, Alamo, Danville, Pleasant Hill, Concord, Clayton and Martinez. A certified Seniors Real Estate Specialist ®, Dayna helps boomers and seniors with the financial and emotional challenges encountered when selling a long-held family home.

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