What to look for in 2017 in the real estate world

Maureen Hughes says to look for more ‘surban’ moves, drones and Trump factor in 2017.

The GenX factor continues to be one of the prime focuses in the real estate market, as buyers born between the 1980s and late 1990s are poised to forge a takeover. Many members of GenX have been working hard to save a down payment and will be looking to make a purchase while interest rates remain low. Those who have managed to pay down student debt will be looking to make a more sizable first time home purchase, says Jessica Lautz, the managing director at the National Association of Realtors, or NAR.

The NAR also stated in 2016, over 17 percent of buyers under the age of 35 saved enough for a home down payment in less than a year, compared with 14 percent of all age groups. Thirty-seven percent of buyers under the age of 35 stated they were able to save a sizable down payment in under six months, compared with 46 percent of all other buyers, the NAR said.

In 2017, the use of drone technology in real estate will likely expand dramatically as unmanned aerial vehicles, or UAVs, have been cleared for commercial use by the Federal Aviation Administration. If you are selling a property with more than an acre of land, or your home has a unique perspective that cannot be seen during a typical showing, adding drone technology can open up your home to an entirely new perspective. While sellers will clearly benefit from drone technology, buyers can also find advantages for homes that they choose to purchase quickly or have additional concerns after a home inspection. Drones can be used to check roofing, seek out chimney cracks, or even scope property lines that are unable to be walked.

‘Surban’ move

Hoping to escape the city for the suburbs, but missing the

convenience of a live/ work/play atmosphere at your doorstep? A coming trend being dubbed as “Surban” has made its way into many suburban areas, mixing urban walkability with outsidethe-city charm.

With more young families and Millennials looking for the best of both worlds, this Surban mix is a perfect solution.

“Existing suburban neighborhoods are adding urban amenities so that there’s an environment where people can live, work and play right outside of the core part of the city,” said Peter Burley, a real-estate executive in Oak Park, Ill., an urbanized inner-ring Chicago suburb.

Surban living is mixed use and blends the best of both worlds, while still providing the glories of fresh air and strong public schools.

Residential growth in suburban communities over the next 10 years is projected to grow by 80 percent, up from 71 percent in the term of 20102015.

Compared to a projected growth of only 15 percent for urban areas by 2025, suburbia is where the real estate market will make huge gains.

Trump factor

As the November election showed, anything can happen and it remains to be seen how the Trump administration will affect the market stabilization.

While some worry about a potential recession, others feel the change in power could bring about positive change.

“I don’t believe that there will be any significant changes to interest rates, at least in the near term, since the underlying fundamentals that have led us into a low-interest-rate environment haven’t changed,” said Rick Sharga, executive vice president of Ten-X, formerly Auction. com. “He seems committed to bringing regulatory relief – and regulatory certainty – to the financial-services industry, which should make more credit more available to average homebuyers who have been locked out of the market by today’s extraordinarily tight credit standards.”