US Housing Market: Projected to Maintain Strength through 2017
As the end of the year rapidly approaches, there are plenty of new things on the horizon. Naturally, there are changes yet to be seen, as a new United States president prepares to take office, and there will certainly be unknowns as the coming months and years unfold. That said, the housing market looks strong right now, and analysts project the next three years to continue to maintain solid ground. Some estimates expect 6 to 6.5 million homes to be sold in 2017 alone, and approximately 160,000 new homes are anticipated to be built annually through 2024.
It should come as no surprise that Millennials will be a force to be reckoned with in the housing market in the coming years. Millennials have officially taken over the Baby Boomers as the largest living generation, and it just so happens that this group of folks is just now entering the world of major purchasing power as it settles comfortably into full-time positions on companies’ payrolls. At the same time, Baby Boomers are settling into their Golden Years, retiring to warmer climates like Florida and Arizona where they can enjoy outdoor amenities such as golf and hiking year around.
These demographics make Marana, Arizona a prime place for thirty-somethings to look at when they’re looking to put down roots. 81% of the Marana population are homeowners, and the median age is 38, per Trulia.com. As Millennials begin to look for property where they can build their own homes, Marana stands to be a competitive city for young professionals and families.
2017’s Housing Market is Predicted to Normalize
Many experts believe the super-inflated housing market is poised to level off in 2017, creating a more normalized housing economy. TheMortgageReports.com indicates, “According to a recent survey of Redfin agents, 54% predict prices will rise somewhat next year and 36% predict prices will level off.” Regarding national home sales overall, the article indicates, “…three headwinds continue to challenge the housing market’s recovery — tight credit, limited inventory, and rising prices, which are beginning to create some affordability problems in certain markets.”
What does this mean for buyers who are in the market for high-end luxury homes? Home prices are near the pre-recession peak. For homebuyers who didn’t cash in on the record-low interest rates and super low prices from the past few months, 2017 is positioned to be an excellent time for these buyers to enter the market. In fact, it may be the last time luxury single-family homes see affordable price tags for months or years to come.
Trulia.com reports an average price per square foot in the Marana, Arizona market at $128 as of November 2016; this number is up 5% from the same time in 2015. In this graph on Realtor.com, median housing prices are shown to have steadily risen in the Marana area from $250,000 to well over $300,000 in the past few years. Going forward into 2017, this graph will likely continue to extend upward, making this the perfect time for homebuyers to lock in a lower price on a custom luxury home.
How Will Interest Rates Affect the Home-buying Economy?
While the buying market is expected to normalize, many economists anticipate interest rates to begin crawling back up the ladder. This could mean a big difference for people who would otherwise be poised to purchase a luxury home. With all else equal, higher interest rates could deter buyers from making purchases (or even exploring the market) because of the increased monthly payments that are anticipated to be calculated once rates begin to rise.
Alternatively, there are many experts who believe interest rates will continue to stay at lower-than-average rates through 2017. The trouble is, no one knows for certain what the Fed will do until it’s been done, and interest rates can increase over night. Since no homebuyer is equipped with a crystal ball into the Fed’s future intentions, a strong sense of urgency is urged for any homebuyer wishing to enter the market, particularly those seeking high-end luxury homes that are currently being sold for record-making prices.
If you’re interested in purchasing a luxurious, custom Dove Mountain home for sale in, Marana, Arizona – The Residences at The Ritz-Carlton is ready to welcome you home. You can build your home your way, with a virtually endless array of amenities and attractions to round out the experience. See what our Dove Mountain homes are all about. Contact us today.