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How Will Cyber Tech Affect Real Estate in 2017

Many different analysts are saying the cyber tech market is going to grow this year! Here are some of the sub-headings of the Kiplinger Letter, dated January 6, 2017:

  1. When Donald Trump takes office on January 20th, he’ll face a slew of urgent cyber threats
  2. [Trump’s] First task is dealing with foreign hackers
  3. Another challenge: Aging federal computers
  4. Look for Trump to roll out a cyber-security strategy yearly in his term
  5. When it comes to the alarming state of federal IT, big changes are on tap.
  6. An overhaul of the world’s largest IT system will dragon for a year

These are just a few article titles floating out there. How does this affect Real Estate agents and investors? Well, if you live here in the local Research Triangle Park, you need to understand what is happening all around us. All information leads us to one conclusion: there will be a LOT more start-up IT companies that will need space to run and grow their companies. More companies will be looking to secure government contracts as the White House rolls out their plans. The larger, more established IT firms will have a push for growth, which will lead to building expansions and new construction. However, the predictions show a steady influx, not a rapid, out-of-control growth in the IT world. Investors and Developers need to act accordingly to this need in our market place. A great resource of knowledge is your local Commercial Real Estate company. One that comes to mind is Kima Commercial. Kima Commercial has a great deal of market knowledge and well-trained commercial brokers. The key word here is commercial. You will want to hire a commercial agent, not just a residential agent who is playing around with commercial real estate. Commercial real estate is a completely different process that has to be learned by actual experience, rather than simply passing a state exam.

If you are in the market to buy property or to buy an existing building, we would recommend the well-qualified Kima Commercial team!

Forecast of the2017 housing market!

A quick glance at the housing projection for the year 2017:

Single-family projections are about 865,000. If we hit these numbers we will cap out above last year’s numbers of 783,000.

Multifamily new starts are holding about the same as last year. The forecast is for about 390,000 versus 385,000 last year.

New-home sales are also predicted to be up from last year, at 635,000 versus 561,000

This year’s forecast for existing-home sales are 4.6% versus last year’s 4.3%.

The market demands are growing. Builders are struggling to keep up with the demands. The demand for buildable lots is high. Even if you can obtain the material and workers to construct a new home, it does not mean you can find a good lot. We foresee the need for commercial agents to step in and find great lots that are for sale. If you find an agent who is good at this type of property search, you should hold on to them. Kima Commercial is, simple put, one of the firms that understands the need for a great commercial agency. The developers need great agents and Kima Commercial has them. Our home value will grow throughout the year 2017 up to about 5%. Starter homes will increase in value faster because of the shortage of product on the ground. Even the larger homes of over $500,000 will show a steady increase in 2017. Markets that are seeing major growth will continue see growth, and markets that might have been viewed as slow will not be this way in 2017. The average home size in 2017 will decrease, which is being caused by the supply and demand. Smaller home will sell faster and are currently in high demand.

We are seeing a major surge in the cost of lumber. The average increase was about 18%last year alone. This is partly because of the tariffs on Canadian lumber.

How high will interest rates go in 2017?

Another area that will change the demands in the market is the cost of money. Our mortgage rates will increase in 2017. This will slow the rate of refinancing and lower new loan origination. Interest rates will be something to watch closely during 2017.

A great way to navigate through these waters is by enlisting help from many different groups and people one of which is a commercial real estate agent. At Kima Commercial we have great access to builders and engineers that can help a client make an informed decision on a building or property. There are so many things you should know before you purchase, and Kima Commercial is an easy way to make sure you get all the facts before you invest.

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Keller Williams Preferred Realty, 7920 ACC Blvd, Suite 210, Raleigh, NC

919-336-1700

Peter@KimaCommercial.com

We look forward to working with you!

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