2017 is not an easy year to predict in the US with many potential changes under the new President-elect Donald Trump, along with a multitude of many other factors. Though, economic forecasters have assembled and released their predictions for the housing industry and market in the upcoming year.

The Gloss:

While experts have predicted a slight slow-down in the real estate market and home improvement industry throughout 2017, Realtor.com's economic forecasting team reported that the hottest markets are expected to continue blazing.

The Bureau of Labor Statistics released a report showing that the construction industry added over 19k jobs to the residential construction industry in November as the housing market continues its recovery.

Home appreciation rates are expected to slow down slightly from 4.9% to 3.9% in 2017

Predicted Slow-Down in Real Estate Market

Following the election, mortgages increased slightly and record low interest rates bid their farewell with a rise of 40 basis points, or 0.4 percentage points, according to Realtor.com . This may push younger potential first-time homebuyers out of the buying pool next year. Millennials are expected to account for 33% of the buyers market in 2017 while baby-boomers looking to take advantage of the rising home values and downsize are starting to sell and buy smaller.

Though the hottest markets in the US, are expected to continue strong growth. And, according to top economist Jonathan Smoke at Realtor.com,

All the top markets have in common relatively affordable rental prices, low unemployment, large populations of millennials and baby boomers, as well as a high number of listing views on realtor.com. The top 10 are forecast to see average price gains of 5.8% and sales growth of 6.3%, exceeding next year’s anticipated national growth of 3.9% and 1.9%, respectively.

A Growth in Construction Jobs

Over 19,000 jobs were added in the residential construction industry helping construction employment reach an 8-year high. Though, the heavy civil and engineering construction sector saw a job loss of 2,100 which has led experts at the Association of General Contractors (ACG) to note that infrastructure companies may be struggling to find jobs and reducing staff. Some critics have expressed concern that a proposed $1 trillion infrastructure plan under the Trump administration will further heighten the construction labor shortage.

Home Appreciation is Expected to Slow

Top economist at Realtor.com Jonathan smoke reported that home appreciation rates are expected to drop a percent in 2017. He notes this:

Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percentage point or more, with Greensboro, NC ; Akron, OH ; and Baltimore experiencing the largest gains. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percentage point or more, with Lakeland, FL; Durham, NC; and Jackson, MS, undergoing the biggest downshift.

The insight we can draw from all predicted trends is that through all that 2017 brings us is that there remains a lot that is simply unpredictable, but we can increase our chances to excel by paying attention. Stay tuned to our blog for continual updates on the movement and analysis of the industry from top housing professionals, and follow us on social media for daily updates.

Contractors.com is the fastest way to match homeowners with qualified home maintenance and upgrade professionals. Create an account on our new platform available on web, Android, or iOS and you'll be automatically entered to win a Tesla Model X.