Now forecasting the housing market is not something that is easy, and many people have come unstuck trying to do it. With that said Realtor.com have come out with their housing market forecast for next year and two Utah cities feature in the top 20. They forecast that the Salt Lake metro area will be the 16th best market in the U.S., with 6.66% price appreciation and a 4.67% increase in sales. Provo comes in at number 18, with a 5.16% price increase and a 5.84% increase in home sales.
In addition to the forecast they have also provided some potential trends for 2017. Probably the most noticeable trend is the slowdown in price increases. This in some way is due to the recent election result, and the subsequent rise in interest rates, which of cause have an adverse impact on mortgage rates, making it especially more difficult for first time home buyers. Because of this they expect home prices to increase just 3.9% in 2017, down from an estimated 4.9% in 2016.
Other notable trends include fewer homes on the market. With the current housing inventory down 11% in the top 100 U.S. cities, this is expected to continue into 2017. Fewer homes on the market mean more competition among buyers, keeping an upward pressure on prices. This is certainly something we are seeing in the Salt Lake Real Estate Market.
Western cities including Salt Lake and Provo will continue to perform better than other areas. 11 out of the top 25 markets are located in the west. Other areas that are forecast to do well include Florida which includes 2 cities in the top 10.
Millennials and baby boomers will dominate the market and continue to do so for the next 10 years.
Now of course these forecasts should be taken with a pinch of salt, but you can see the full list at 2017 National Housing Forecast.