Realtor.com data suggests that 2017’s U.S. real estate market will be a “seller’s market”, much like it is this year.
This forecast stems from a combination of low inventory and high demand from first-time home buyers nationwide. Said buyers are not held back by existing financing issues or competition, according to Realtor.com chief economist Jonathan Smoke.
Buyers’ markets are largely expected to develop in smaller metro areas with lower levels of population growth. Devon Thorsby of U.S. News cites Kansas City, Missouri as an example, where inventory is rising and buyers are less willing to accept high prices.
In high-demand tech employment markets, such as Seattle, a strong seller’s market is likely to continue. Active listings have dropped by more than 13% YOY in October 2016, according to the Northwest Multiple Listing Service. Seattle’s median home price of $362,468 is still under half of Silicon Valley’s $777,660 median, but real estate broker Marlow Harris believes there’s still room for prices to grow as demand rises and inventory shrinks.