Housing in 2017: The Good, The Bad, and the Notable

Housing in 2017: The Good, The Bad, and the Notable

Mortgage company Freddie Mac called 2016 “housing’s best year in a decade”. While your experience may have varied by your location, it’s encouraging to see that overall last year brought in the highest home sales since 2007 and the fastest rate of construction growth sine 2008. The recession is beginning to feel like a faint memory, with metro areas seeing economic growth.

But is 2017 going to continue this trend? Is it a year to be cautious or finally take that investment plunge? Let’s take a look at the forecast for some answers.

The Good:

1. Credit Risk Will Stay Low

Purchasing a property is a major decision for multiple reasons – one of them being the impact on your credit. Buyers can be nervous about how their purchase might effect the score they’ve worked so hard to maintain. Luckily Core Logic’s Housing Credit Index shows that 2017 should continue to be favorable for these credit risks.

2. Renting Will Become More Affordable

Increased supply has grown to meet rental demand, meaning investors are finding enough renters and can afford to lower prices. This is in part due to more people finding roommates to double up with and can also be attributed to the creation of more multifamily rental units. The renting game is evolving with the times, and it is benefiting both parties.

The Bad:

1. Mortgage Rates are Going To Rise

As the housing market recovers from the crash, mortgage prices are going to raise rise. While this might be a good thing if you are selling, it could mean buyers are more hesitant to purchase and slow the speed of sales we’ve seen in 2016. And time is running out if you are looking to buy. It doesn’t look like inventory is improving either as it’s currently down 11 percent and isn’t likely to get better.

2. Price Appreciation Will Slow

Unfortunately for long time owners, it’s going to be a down year for home price appreciation. While in 2016 growth was at 4.9 percent, 2017 is predicted to see only a 3.9 increase. This shouldn’t scare anyone too much because we don’t know what future years will bring, but is still disappointing.

The Notable (Neutral):

1. Millennials Are Headed to the Midwest

Times are changing, and CBS news predicts that instead of making moves to the coasts, college graduates are going to settle in the Midwest. These locations offer good jobs and more affordable housing options. Madison, Wisconsin; Columbus Ohio, and Minneapolis, Minnesota are a few cities to watch for this trend.

2. Suburbs Will Grow in Popularity
Those who aren’t renting are looking at the suburbs for affordable housing. This means that people driving to work will increase for the first time in a decade because many flocking to the suburbs live in the city. Despite the increased commute time, people in 2017 are going to find the sacrifice worth it for the cheaper prices.

No matter how true these predictions turn out to be 2017 is bound to be a year of a change. Whether you buying or selling, it’s more important than ever to make sure you are working with a property manager who has your best interests at heart. Doing so will ensure 2017 is your best year yet.

Ready to Give Up the Hassle of Managing Your Property?

Why Hire a Property Manager?

Why Hire a Property Manager?

You know that owning a rental property can be financially rewarding. However, managing that property requires a large commitment of time and effort. If you don’t have the time or resources to devote yourself to the task of managing your property, hiring a property manager may be your best option.

Here are some reasons you should hire a property manager to take care of your rental:

Setting the right rental rates

A good property management company will conduct a thorough market study to set a rental price for your property. They will ensure that you achieve the perfect balance between maximizing your monthly income and maintaining a low vacancy rate.

Collecting and depositing rent on time

Securing payments from clients tenants can be difficult, as well as awkward. Property management companies have efficient, trusted systems to effectively collect rent and maintain timely payments effectively. This is especially important if you have a limited number of properties and need to collectcollecting payments on time is essential to maintaining cash flow.

Marketing and advertising property

A property manager knows exactly where to market your property and how to create compelling advertising materials. This is a major advantage when it comes to filling properties quickly and avoiding long vacancies.

Finding the best tenants

Experienced property managers are experts at finding the best, most trustworthy tenants. They can take care of all the details, including securing criminal background and security checks, running credit reports, verifying employment and collecting previous landlord references.

Managing the tenants

The property management company will completely manage the tenant-landlord relationship. They will also handle both routine and emergency maintenance, take care of routine inspections and manage situations where conflict resolution is required.

Managing vendor relationships

Property management companies have relationships with maintenance workers, tradesman, contractors, suppliers and vendors. It’s almost impossible for an independent landlord to form these connections. Your property manager will get you the best work at the best price and oversee necessary maintenance.

Ensure that you are complying with housing regulations and property laws

There are many laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, along with fair housing regulations. Property managers can help you avoid lawsuits by keeping your property up-to-date and in compliance with regulations.

Ready to Give Up the Hassle of Managing Your Property?