Top Major Trends of Real Estate in 2017

1. Top Major Trends of Real Estate in 2017 The real estate market has not been kind to buyers and sellers in recent years. World-over, the real estate industry was influenced by developments in the technological industry as well as demographic shifts such as rapid urbanization, difference in the lifestyle patterns of Millennials, etc. Added to the woes of the global real estate industry were less than optimistic macroeconomic performances and regulatory developments that continued to plague the profitability of this industry. Here we discuss some global real estate trends that are set to shape the year 2017 as per the top realtors of the industry. Lenders and investors are more cautious about real estate development projects in spite of rents being higher around the world. There is a risk associated with emerging markets and a low supply growth is further establishing the rental outlook firmly. Nobody wants to invest without having a surety that the buildings are going to fill up with tenants/home buyers. While overall the real estate market is improving steadily, the transaction volumes are slowly climbing back to top. Prices are at an all-time high and in spite of the duration of the real estate market expansion, new supply still is at low levels. Interest rates are rising all over the world and there are more increases predicted before the end of 2017. Such kind of decisions impact mortgage rates, causing them to rise and

2. makes it difficult for potential homebuyers to be able to afford a home of their own. According to Lisa Harris real estate agent, while mortgage rates may increase, it is also expected at the same time that mortgage credit will be available more easily due to looser lending regulations. While many construction projects were halted towards the end of 2016, this year has shown a more positive trend towards home construction and home constructors are moving in to build new homes, being encouraged by looser credit, a higher demand from buyers, combined with higher wages as well. There is no doubt that the result of the US presidential election has influenced not just the US real estate market, but global markets as well. Furthermore, the announcement of Brexit is also likely to take its toll on the housing market somewhere down the line in 2017. However, there is no reason for undue worry as according to top realtors, the real estate market is known to take such results in its stride. On the whole, though, global real estate markets are likely to spend the remainder of 2017 cautiously, partly as a fall out from the political uncertainty that is going on in the world at the moment. Building on this scene of political uncertainty, it can be observed that real estate investors are focusing investment transactions primarily in just eight major cities, also known as the 'top eight'. These top eight refer to New York, London, Tokyo, Los Angeles, Paris, San Francisco, Washington DC and Hong Kong. Rental growth in these eight cities has been particular high as compared to other global markets. As an environment of low global interest rate prevails, property pricing is continuing to benefit from this. Even though in the United States, low unemployment rates and rising wages have given the market a much needed boost, recovery is still expected to be slow. The real estate industry in emerging markets is also developing at a rapid pace. However, a slowdown in China in 2015 has impacted this growth rate to some level. Commodity prices are rising in these emerging markets, thus indicating that the real estate industry is set to gather momentum in these markets once again. China's fiscal stimulus package has added a much needed boost to the faltering economy and growth once more seems to be accelerating in the Chinese real estate industry. So overall, the year 2017 is expected to end on a kinder note for the real estate market as compared to the previous two years. Source: https://fastexpertinc.jimdo.com/2017/09/08/top-major-trends-of-real-estate-in-2017/