Across the country, real estate trends for the 2017 year are starting to shape up. However, it is the real estate trends in the Walnut Creek, CA area that I am specifically interested in as they seem to be leading the way.
First, commercial real estate used to define the success of an area but with Macy’s, Sears, Kmart and Kohl’s all adding store closings thanks to disappointing sales in 2016, what you live by and the strength of those markets will stop dictating (well, to a point) the cost of real estate in these areas. Living next to a mall, for example, may not be as in demand and therefore as expensive as in years past.
Second, it is proven right now that American households are feeling wealthier and more confident. This means people are buying more luxury experiences vs. “things”. This trend will impact the real estate market because restaurants and other lifestyle retailers are doing better than big stores. People want to buy home near where they can have these experiences and are starting to look at downtown options around the country, typically where many spas and restaurants gather.
Finally, interest rats are not going up. The Fed announced t it wouldn’t be raising short-term interest rates, and we probably won’t see any movement until there are clear data points showing inflation. For now, this means people have more buying power and this means they have more options and time to pick out what they really want versus what they have to take. In 2010 there were limited options for buyers, now- buyers can make more demands when it comes to selecting a home.
Want to see what you can buy around Walnut Creek, CA? Give me a call! http://evusa.com/en/advisors/5777/sam-benson/