Real Estate News

3 possible factors in buyers' favor for 2017 home sales

Published: 14 Feb 2017

While housing costs remain a concern for anyone looking to purchase a home this year, there are some factors in new owners' favor for purchasing and refinancing. A major benefit is the mix of both good market conditions and finance-related tools at a buyer's disposal. Various sources revealed possible boons to those attempting to adapt to the new realities of the market, such as the following:

1. Consumer confidence from the previous year
According to the National Association of Realtors, the final quarter of 2016 showed a majority of survey respondents either strongly or moderately believing that now is "a good time to buy a home." Though this is a decrease from the previous quarters, (Q1 saw the figure at 75 percent and Q4 only 70 percent) it still potentially represents trust in the market that could stay if the sales maintain. In many regions, the percentage seemed to go higher in older age groups.

2. Reverse mortgages
Borrowers who are 62 years or old have access to reverse mortgages, The Wall Street Journal reported. This source said that the National Reverse Mortgage Lenders Association figures actually went down after 2015, following a peak rating at 2009.

However, American College of Financial Services taxation professor Jamie Hopkins said that home equity could be an important part of future funding.

"If home equity is incorporated more strategically in the future, we will see vast improvements in the financial security of retirees," Hopkins told The Wall Street Journal.

3. Millennial market presence
Purchases from millennial-age buyers could still be a force to reckon with this year, according to a Nov. 2016 forecast from the National Association of Realtors. The organization's chief economist Lawrence Yun said that the there will be more than 1.2 million housing starts. He added that new home buyers could offset some of the cost hikes and other conditions seen during this time.