Here are some of the basics that we are expecting to see in 2017. Interest rates are expected to rise. Some are saying that a 30 fixed will rise to 4.75%. Nothing crazy, still in the historically low range, but rise non the less. This may cause some buyers to back out of the game.
Millennials are expected to be a big category of home buyers in 2017. We have seen a lot more multi-generational home buyers with families looking to buy a home for two or more generations of the family to live in. Even though this is still a strong trend, Millennials are likely to strike out on their own, especially towards more urban living like Portland.
Tiny homes are becoming more popular. With shows like "Tiny House, Big Living" and "Tiny House Nation", more people are becoming aware of the benefits of living small. This is a trend that I expect to continue in 2017 and grow in popularity in Portland.
Inventory for the past few years has been at amazing lows. Basically anything under $350,000 in the Portland Metro area is still flying off the shelves. New construction is picking up, which will help with the inventory, but I expect the Portland area to still have a shortage of inventory for a while. As long as inventory is low and demand is high, home prices have no where to go but up. When buyers are forced to get into bidding wars and you've got 5 offers in on the same house, people will go much over list price to get the home they want.
What will 2017 hold? Only time will tell.... but for now, it's certainly the time to sell!
