This summary of predictions for housing in 2017 includes 17 different estimates from various groups. Here is the one I’m most interested in:
Most observers expect home sales and prices to moderate in the coming year. They say suburbs will make a comeback while the days of low mortgage rates are over.
Suburbs will make a comeback you say? Perhaps there will indeed a Donald Trump effect for suburbs. Here is one more specific suggestion that might contribute to this:
The percentage of people who drive to work will rise for the first time in a decade as homeowners move farther into the suburbs seeking affordable housing.
Cheaper gas probably doesn’t hurt either.
Looking through these 17 predictions, few explicitly apply to suburbs. Most are about two things: millennials (with some help from baby boomers) are driving the housing market and there will be a slow rise in housing values.
One bonus summary statement:
One prediction you can always count on: No matter what’s happening with the economy, NAR is always going to say it’s a great time to buy. Its fourth quarter Housing Opportunities and Market Experience survey found that 70 percent of people say now is a good time to buy a home. NAR also predicts the rate on a 30-year fixed mortgage will rise to 4.6 percent by the end of 2017.
And who is going to check to see if these predictions for 2017 were successful?