New technology, real estate developments, the millennial generation, and the United States’ new president — what are the factors and trends that will shape the real estate industry this 2017? Let’s find out. Here are the five biggest real estate trends to look out for this year.

1. 1. Millennials are expected to buy their first home.

      According to the National Association of Realtors (NAR), more millennials born between the early 1980s and the late 1990s are expected to buy their first piece of residential real estate this year.Three things will influence whether this particular group of millennials will move up from their current home situation. First: savings. Jessica Lautz, managing director for research at NAR, said that this age group will most likely have saved up to upgrade from a condo or a starter home.

      Second: student debt. According to Lautz, most of these millennials have most probably finished their student debt payments. This will enable them to allot more money to build up their home-buying capability. Third: low interest rates, which will attract any kind of homebuyer to invest in a home.

1. 1. Generation Z might start buying homes soon.

      Although the spotlight currently shines on the millennials, Gen Z is waiting in the wings, biding their time. The oldest of Generation Z are already teenagers, expected to finish their high school education this year.Unlike the millennial generation, Gen Z is coming of age in a time that is starkly different from the period the millennials grew up in. Gen Z will have the privilege to blossom into young adults in a time of better job prospects, low interest rates, and high wages, which will help offset the expenses of college education, said Lautz.

      This is in sharp contrast to what the millennials had to contend with: war, terrorism, recession, stock-market collapse, a destructive housing downturn, and the burden of student loans.

1. 1. The age of drones

      According to industry experts, the use of drones will significantly increase this year. This is mostly due to the fact that the commercial use of unmanned aerial vehicles or UAVs has been approved by the Federal Aviation Administration.Location is an important factor that affects the value of a home, so if you’re selling a property with significant acreage, using a drone to show a different perspective of the property will help your sale tremendously.

      In addition, basically everyone can fly a drone. This year, operators don’t need to obtain a commercial pilot’s license to fly a UAV. Using drones to market a property is a new way of interacting with potential clients, and one that doesn’t need to cost a lot of money. To be sure, check with your local FAA before you operate a drone.

1. 1. The rise of the ‘surban’

      This year, suburban sprawl will be known by a new name: surban. More than mixed-use developments, these suburban neighborhoods have, over the years, slowly injected in their veins urban amenities that make going to the city unnecessary. After all, you can work, live, and play within the surban sprawl already.A surban will also attract a lot of homebuyers to the lifestyle it offers: designed to be inclusive communities, surban living is a mix of urban and suburban amenities. Real estate experts predict that most of the residential growth in 2017 and the following years will take place in surban communities to meet the rising demand for it.

1. A new administration

   Late last year, Donald Trump won the presidential elections, and just a few weeks ago, he was sworn in as the president of the United States. With a new administration comes a set of new policies in line with the leader’s agenda, and there is no doubt President Trump will roll out a few policies.At present, President Trump has signed an executive order that effectively blocks the reduction of mortgage costs. This will affect homeowners and buyers with a mortgage backed by the FHA.

It’s still unclear what other policies the new administration has in store that will affect the real estate industry, but some experts are not too bothered for now. Some say that home buying will remain strong this year, while others say that interest rates could rise faster than usual due to inflation, which can be triggered by new economic-growth plans. Whatever happens, we’ll all have to wait and see.

For more information about Bayfield and South Shore real estate, contact us today at (715)779-5000 or email us [mail_to email=”Agent@WindseekerRealty.com”]Agent@WindseekerRealty.com[/mail_to].