In real estate, things do not change overnight. What happened last year is often a good indication of what will happen this year. Trends evolve. Time lags exist. Money flows. Economics impact. Consumers buy and sell. Market forces ebb and sway and flow. There are a lot of moving parts.
Most people do not want to have to rely on their car for everything, all the time. They want to be able to walk and have access to public transportation for daily tasks. The trend to suburban enclaves where people can live, work and enjoy life will continue. Suburban neighbourhoods are adding more and more urban amenities for their residents.
Revitalized city centres
Urban areas will continue to be redeveloped for residential and commercial spaces. Walkablity and convenience are the driving forces. Denser communities of townhouses and condominium apartments will continue to be developed in downtown areas.
Municipal governments are supporting affordable housing initiates in many neighbourhoods giving lower income families access to transportation links and public institutions and amenities.
Until the backlog of eager buyers is satisfied, we will remain in a seller’s market with, bidding wars and rising prices. Our real estate market will remain hyper-competitive until at least the summertime.
New homes and homes being renovated will incorporate more smart features. Things like learning thermostats and integrated technology such as solar panels, USB hubs and automated home functions will continue to gain popularity.
The use of drones to take unique flyover photographs and videos of properties for sale will become more popular.
2017 will be the year that interest rates begin slowly to rise. We will likely have to wait until springtime for this to begin. At the end of the year, interest rates are expected to be .5% higher.
First time homebuyers make up between 30 and 40 percent of the real estate buyer’s market. Many first time homebuyers will be skipping the ‘starter home’ altogether to focus on the ‘move-up’ or ‘forever’ home instead.
Kitchener-Waterloo’s light rail transit will begin operation at the end of the year. Homebuyers will want to live within walking distance to a station.
Smaller homes in demand
Smaller homes will see the greatest price growth. That will be great news if you are hoping to trade up in 2017, bad news if you are buying your first home.
Inventory will remain low in 2017. It will take time for the marketing to move to equilibrium.
New home sales
New home sales are expected to increase by 10% while new home starts are predicted to rise 3%