Kelly Leighton

Last Updated: January 17, 2017 | View all posts by Kelly Leighton

“Millennials will be buying properties. 2017 will be a year when we see more loan applications and purchases for millennials,” said Abby Shemesh, founder and CEO of Amerinote Xchange, on what trends he anticipates for the real estate industry in 2017.

Another trend Shemesh expects is that baby boomers will be downsizing this year. However, he said where the boomers and millennials buy may not be where you would expect.

“A lot of folks are saying that millennials will be purchasing in ‘hot’ cities, I disagree. A lot of markets are so saturated and overpriced. My assessment is that you will see a huge increase in cities that are not being focused on. It will be a huge migration, depending on the job situation for millennials. They may be moving to not-so-sexy cities.”

He said bigger cities in Pennsylvania will still see growth this year, but not at the rate they have experienced in the past year. “It will be steady in Philadelphia and Pittsburgh, but there may be slower periods. As for smaller areas, they should see more inventory this year, so they may be attractive.”

As for the baby boomers, he said they may still be heading south, but not as south as before. He thinks the southeast may see an uptick in boomers, as they strive to find housing that is affordable.

Shemesh also believes we will see mortgage rates increase. He predicts they will be as high as 4.75 percent, especially if the economy is doing well, but doesn’t see it going any higher.

“The president-elect should not make too much trouble for real estate market, at least for now,” he said. “I feel that his business practices align with how real estate markets can grow. But if he does something in politics that would significantly affect the American economy, it would affect real estate market eventually,” said Shemesh.

How can Realtors® prepare for the housing market this year? Shemesh believes it’s all in how you do business.

“I’ve seen agents blow by their competition by thinking outside the box. Broaden horizons and get more creative. All Realtors® in all areas can benefit from that advice. Let go of what you think you’re supposed to do. Apply yourself in a way that would be creative. Don’t be another agent waiting in line to submit a bid.”