House prices are expected to rise in 2017, but not as quickly. According to Realtor.com, prices will slow to 3.9 percent growth year-over-year, down from 4.9 percent this year.
Cicely Wedgeworth of Realtor.com offered five housing market predictions for next year. Millennials will capitalize on affordable housing in the Midwest, inventory will remain low, and metros in the west will see the highest price increases.
Millennials and Baby Boomers will influence the market the most.
In 2017, the U.S. real estate market will be in the middle of two massive demographic waves that will power demand for at least the next 10 years. Millennials and baby boomers, the two largest American generations in history, are both approaching life stages that typically motivate people to buy a home: marriage, having children, retirement, and becoming empty nesters.