Orlando Housing Trends in 2017 will be a combination of rising mortgage rates and rising home prices may potentially push some first-time home buyers out of the market. Therefore, Realtor Magazine anticipated cities like Orlando will see moderate growth in the upcoming new year. They state home prices are expected to rise 3.9%, and existing home sales are predicted to increase 1.9% to approximately 5 million homes in 2017. Mortgage rates are forecasted to reach 4.5% which is a large increase from the 3.5% average of 2016. These higher rates may slow down the recent increases in first-time home buyers coming to the market. Remember, a higher interest rate equals to a higher mortgage payment.
Realtor.com® is also predicting 2017 major housing trends expected to influence the market:
1. Millennials and boomers to dominate: These two giant demographics are expected to fuel demand for at least the next decade.
2. Midwestern cities get more attention from millennials: We recommend watching the country’s midsection for a spike in the millennial purchase market share in 2017.
3. Price appreciation to slow: Home prices are forecasted to slow to a 3.9 percent year-over-year growth in 2017. This is an indication that the market is priced correctly.
4. Fewer homes on the market: Inventory is expected to drop even lower in 2017, offering home buyers even fewer choices. We anticipate March through June will allow for a larger inventory but it will equally be difficult to obtain a property due to the amount of active buyers.
5. Orlando to lead in prices and sales.com forecasts Orlando sales growth of 6.3% and price gains of 5.8%. Orlando is considered one of ten fastest growing metros in the country.