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The Top Real Estate Trend for 2017 – Housing Market Fragmentation

Taking a chunk out of real estate trends for 2017: Housing market fragmentation. And like a nightmare math problem in a cinder block sized textbook, it’s all Greek to real estate professionals nationwide.

What’s the main factor in this problem?
In a wide range of locations and segments, buyers and sellers are doing the math… And coming up with different results. Small home inventory is miniscule, thus this segment is seeing sharper price growth than larger, higher-end options. Urban areas are appreciating faster than the ‘burbs… Leaving sellers to pull their hair over figuring out an ‘ideal’ listing price – and sellers shaking their heads as they struggle in vain to determine ‘fair’ housing prices – and offers. How’s an agent to advise his clients?

The sum of the parts
The best move for families will depend on their situation:

• Growing family?
Now’s the time to upsize. The average price of a 2 bedroom climbed 59% nationwide, while 4 bedrooms saw a more modest 41% rise. For those looking to move-on-up, this offers the best of both worlds: Huge buying – and selling – advantages.

• Starting out or sizing down?
For first-time buyers, retirees and others looking to cash-out and scale-back, low supply and greater competition have created a tight market. Here flexibility is key: Handling updates will earn a better deal, as will willingness to move from the city center. Case in point: Price per square foot in metro areas: 54% rise; Urban cores? 76%.

The financing factor
Real estate trends of record-low mortgage rates also aren’t expected to last, and the costs will add up: Just a half-point rate jump from 3.7% to 4.2% adds $864/year on a $250,000 home – so buyers should also consider this when making the decision to stay or change the status quo.

Real estate trends creating problems you can’t figure out how to solve? School yourself with the help of Properties Online today.

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