Economy Looks Favorable for Housing, But Commission Pressures Remain
That’s the consensus view of experts interviewed by Real Estate Broker’s Insider for our annual outlook — although it might be wise to note that predicting the future is never an exact science.
(Boonton, NJ, January 11, 2017) — Home prices are poised to keep climbing in 2017, thanks to rising incomes and a tight supply of homes for sale.
While economic forces seem mostly favorable, real estate brokers are likely to face continued pressure on commissions by consumers, along with increasing demands for more generous splits from agents.
That’s the consensus view of experts interviewed by Real Estate Broker’s Insider for its annual outlook — although it might be wise to note that predicting the future is never an exact science.
"We think housing will begin to march forward in the coming years," says National Association of Realtors Chief Economist Lawrence Yun.
However, it could be a slow march. Zillow forecasts home values to slow to a 3 percent appreciation rate by October 2017, down from a 6 percent pace in 2016.
Many expect a flood of young buyers in 2017. First-time buyers largely disappeared in recent years, but that trend has reversed. After slipping for three straight years, the share of sales to first-time buyers in 2016 ticked up to 35 percent, according to the National Association of Realtors.
"We’re already at a point where the largest group of buyers is millennials," says Svenja Gudell, chief economist at Zillow. "Especially for first-time home buyers, we’re going to see the number of millennials rising."
The full Annual Outlook article is now available online.
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