Millennials are about to take over 2017 real estate markets. In fact, that’s what many have predicted will come as a big wave for the industry’s first-time home buyers. That is, individuals looking to buy their first home will have increased to 50 percent in 2017. This is a nice leap when compared to the 33 percent in 2016. And, of the 2017 buyers, 60 percent are under the age of 35.
And, government-backed mortgage companies such as Fannie Mae and Freddie Mac will back mortgages of up to $424,100. This is in contrast to the previous $417,000 allowed. Plus, this increase in loan limits might appeal to first-time homebuyers as government-backed mortgages are often looser. In summary, expect competition to grow fiercer for more affordable homes in the suburbs.
Want to know where millennials are headed to buy homes? Head west. Western cities will continue to lead the pack and account for 11 of the top 25 markets from Realtor.com data. These top markets for home buying offer low unemployment, affordable rental price. Additionally, they have larger numbers of millennial and baby boomer residents.
Phoenix boasts stunning landscapes. With easy access to outdoor activities such as hiking, camping and mountain biking, it’s an outdoor paradise. Prices are expected to grow 5.9 percent with sales rising 7.24 percent.
Los Angeles, CA
The City of Angels is in its peak of attractive real estate. With collaboration of independent artists and business owners, movie stars and juice bars. Prices will increase 6.9 percent and sales will come in at 6 percent.
Boston offers a small town feel with the perks of city living. Additionally, it’s home to U.S. history’s most significant social, cultural and political moments. Prices will increase 6.1 percent and sales will grow 6.3 percent.
With technological and cultural development, paired with reasonable costs this capital city continues seeing growth. The farm-to-fork movement is centered here. Offering an array of nearby farms and wineries. Prices will increase 7.2 percent and sales are expected to grow 4.9 percent.
Riverside offers an ideal central location. As home to many historical attractions in the Inland Empire metropolitan area, prices are expected to grow 5 percent with a sales growth of 6.9 percent.
As a city of swimming, surfing and many cultural offerings, alongside a low cost of living, Jacksonville attracts many to the sunshine state. Expect prices to rise 4.2 percent and sales to grow 7.6 percent.
Orlando makes for an inviting place to put down roots. With plenty of sunshine, diverse population and year-round recreation, prices will rise 5.7 percent and sales will grow 6.1 percent.
Thanks to strong job growth and a young, diverse, educated population, Raleigh boasts strong growth in this part of the Research Triangle. And, this green space metro area will see prices rise 4.2 percent and sales grow 7.6 percent.
With modern downtown with forested mountains surrounding the city,Tucson boasts an inviting landscape. This city will see prices rise 6.1 percent and sale grow 5.5 percent.
Portland is a center spot for Pacific Northwest living. Plus, its parks, eco-friendliness and thriving art scene, is attractive to the millennial market. Expect prices to rise 6.6 percent and sales to grow 5 percent.