2017 Housing Crystal Ball

It’s here, it’s finally here. The calendar has changed and we are into 2017. I have dusted off my crystal baseball and will be making a few predictions on the market in 2017.

  1. Home inventory starts to rise… slightly… in certain price areas 
    2017 will have modest increases in months of inventory closer to a mixed market. Currently the months of inventory is around 2 months but by December it will be closer to 3 across the board and pushing four in certain areas. Homes above $400,000 will see larger increases in inventory.
  2. President Trump policies make it easier for investors driving low end prices up
    If it is easier to invest there will be an increase of investors. This increase will only add to the competition on the under $100,000 properties are REO’s.
  3. Banks release the damn of foreclosures
    The bank friendly Trump policies make it easier for those holding onto the “shadow inventory” to release it to the public. The REO property managers become overwhelmed and start to price properties to sell quickly as they can’t keep up with the supply of properties.
  4. Sale prices have small average increases
    Prices on average will creep up mostly led by the under $200,000 price point as the increase in REO properties increases the opportunities for investors in this price point. Home sales over $400,000 show minimal 1-2% gains in 2017.
  5. Wildly bold predictions
    Housing heats up as dow crosses 28,000 (40% increase) and corporate investors start selling all the homes they bought for cheap prices so they can get back into the market. Year over year sales increase 50% as days on market drops to all time lows.

Where do I see the best opportunities in 2017 for investors?

Buy and hold should be a good investment in 2017 as rents continue to increase across the metro and millennials move to apartments for a few years.

Buy, fix and sell will still be profitable if you can find the properties off market. Once they hit the MLS there will be too much competition to be profitable. For example, a south KC home recent went on the market for $65,000 and had multiple offers and sold for $103,000.

Large Multi-family as investors start to sell off Single family and move into multi-unit buildings.

Successful investors become master marketers and are able to create their own inventory.

Wrapping up

Hopefully you have enjoyed my crystal ball predictions for 2017. Comment below on what you see happening in 2017.