Special Report survey respondents and some of the industry’s top executives were nearly unanimous in believing 2017 will be another strong year for real estate.
The first quarter especially is expected to start with a hiss and a roar as buyers and sellers hasten to make a move now that the election is over and interest rates have undergone the first in a series of rises.
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Overall, 2017 will be an unorthodox, non-traditional and unpredictable year, both nationally and globally. Those who are nimble will manage it best.
“What most people think they know about real estate will have to be re-educated. Low interest rates will no longer be the driving reason for home purchase, building personal wealth and stability will,” said one respondent.
A bird’s-eye view
Those surveyed for the 2017 Outlook Special Report expressed the hope that higher interest rates might free up inventory as more buyers and sellers, previously holding back, are galvanized into taking action due to the new market conditions.
Thanks to the momentum driving the housing market — good employment, rising salaries, high-earning millennials with an interest in homeownership who are unhappy with high rents — our research found there is good optimism about the housing market in 2017, with 27.43 percent of respondents saying they are extremely optimistic and a further 45.13 percent describing themselves as somewhat positive, while 11.95 percent are ambivalent.
Meanwhile, more than half of this survey’s respondents (52.21 percent) expect President-elect Donald Trump to have a positive effect on the U.S. housing market. They are looking to Trump to ease regulations and to look after an industry he knows well.
Said one upbeat respondent: “Trump will be running the country like a businessman versus a politician — he will be lifting some of the regulation that stifles the industry.”
A common sentiment expressed by respondents was that because Trump has an understanding of real estate, he will be reluctant to harm the industry.
“I am going to remain optimistic. Trump likes real estate so I hope he makes the conditions conducive for our industry to succeed,” said one respondent.
Added another glass-half-full respondent: “Trump understands the vital role that real estate plays in the health of the economy. I believe his administration will work not to negatively impact our business.”