2017 is off to a robust start! This year will undoubtedly see some changes - both large and small - across the economic and social-political spectrums. Some have already taken place! Predicting whether those changes will be for better or worse remains difficult.
The good news is that there doesn't seem to be a lot of change on the horizon as far as Wisconsin's real estate market. Inventory will likely remain low and home prices will remain strong. New home construction will remain fairly stagnant and foreclosure rates continue to diminish. The only real change in the foreseeable future is that interest rates will increase, but analysts predict those rate increases will come in small increments.
So, what are some other trends we may see as we move into 2017? Don't be surprised to see Millennials and Baby Boomers dominating the housing market. It seems a little odd, but the market will probably will be led by these two demographically diverse groups for the next decade.
Speaking of Millennials in the marketplace, cities in the Midwest are predicted to continue to beat the national average in millennial home purchases in 2017. Madison, Wisconsin is leading the pack, followed by Columbus, Ohio, Omaha, Nebraska. Des Moines, Iowa and Minneapolis, Minnesota. In 2016, the millennial market share in these areas was a whopping 42 percent!
Nationally, baby boomers will make up about 30 percent of all buyers in 2017. Despite the anticipated interest rate increase, the Boomer market will remain strong because this demographic is less dependent on financing. Stay tuned as we move into 2017!
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