5 Ways the Housing Market Could Change in 2017

5 Ways the Housing Market Could Change in 2017

2 min read
Sterling White

Sterling White is a multifamily investor, specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling was involved with the management of over $10MM in capital, which is deployed across a $18.9MM real estate portfolio made up of multifamily apartments. Through the company he founded, Sonder Investment Group, he owns just under 400 units.

Experience
Sterling is a seasoned real estate investor, philanthropist, speaker, host, mentor, and former world record attemptee, who was born and raised in Indianapolis. He is the author of the renowned book From Zero to 400 Units and the host of a phenomenal podcast, which hit the No. 1 spot on The Real Estate Experience Podcast‘s list of best shows in the investing category.

Living and breathing real estate since 2009, Sterling currently owns multiple businesses related to real estate, including Sterling White Enterprises, Sonder Investment Group, and other investment partnerships. Throughout the span of a decade, he has contributed to helping others become successful in the real estate industry. In addition, he has been directly involved with both buying and selling over 100 single family homes.

Sterling’s primary specialities include sales, marketing, crowdfunding, buy and hold investing, investment properties, and many more.

He was featured on the BiggerPockets Podcast episode #308 and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single family investing and apartment investing to mindset and scaling a business online. He has been featured on multiple other podcasts, too.

When he isn’t immersed in the real world, Sterling likes reading motivational books, including Maverick Mindset by Doug Hall, As a Man Thinketh by James Allen, and Sell or Be Sold by Grant Cardone.

As a thrill-seeker with an evident fear of heights, he somehow managed to jump off of a 65-foot cliff into deep water without flinching. (Okay, maybe a little bit…) Sterling is also an avid kale-eating traveller, but nothing is more important to him than family. His unusual habit is bird-watching, which he discovered he truly enjoyed during an Ornithology class from his college days.

Education
Sterling attended the University of Indianapolis.

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How will the housing market change in 2017?

There are a lot of factors at play this year. How can we expect them to mold the property market? What will it mean for home buyers, sellers, and real estate investors?

5 Ways the Housing Market Could Change in 2017

1. Increasing Property Prices

Home prices are heading up in just about every market. High demand and the resulting price lift in urban living areas will drive people to the suburbs. Expect to see areas that were booming in 2005 and 2006 to come back again as buyers and renters seek more affordable places to live.

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Related: 7 Real Estate Investors Discuss What They’re Seeing in Their Local Markets

2. Oversupply

Builders and investors are bullish on the market. This continues to fuel new building. This includes new home developments, condo buildings, mixed-use projects, and spec homes. This will continue to be most concentrated in dense urban areas, followed by the suburbs as land prices rise. Eventually this will lead to oversupply, and property owners may be forced to begin to offer larger incentives and cut prices.

3. Interest Rates

Additional building and spending will fuel rising interest rates. Higher interest rates can also compound issues with oversupply and high property prices. Higher mortgage rates will make it even more expensive to buy a home, as well as increase living expenses in general. The Fed Reserve has indicated at least two or three rate hikes may come this year. While this may be a symptom of a stronger economy, many investors may not be anticipating how hard this will hit their cash flow each month.

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Related: A Look at Today’s Housing Stats: Are We Entering a New Bubble?

4. Mortgage Lending

The new White House administration has pledged to ease mortgage lending and access to credit. Expect this to mean more aggressive marketing from lenders and progress back toward more subprime-type loan features and lower down payment requirements. However, this may be offset by higher rates, and unless certain regulations and liabilities are cleared, banks and funds may continue to prefer lending to investors rather than regular home buyers.

5. Jobs & Wages

Much of the above is also likely to add to the momentum of jobs being added to the economy. As thousands of new jobs are added in energy, manufacturing, and finance, increased competition for talent could finally boost wages. This will partially offset high housing costs and support more growth in rents and house prices. Still, it will be critical for individuals to position themselves in careers and businesses, which will benefit from emerging technology, as many jobs are replaced by AI and other tech.

Do you agree with this assessment? Anything else you’d predict for 2017?

Let me know with a comment!

There are a lot of factors at play this year. How can we expect them to mold the property market? What will it mean for home buyers, sellers, and investors?