What can homeowners, buyers and sellers expect in 2017? Real estate experts have a positive outlook for 2017 and are predicting continued growth. “Opportunities in the Canadian market continue to be abundant but no two markets are the same,” says , partner  and national real estate practice leader at PwC Canada.

Commenting on the U.S. market, National Association of Home Builders Chairman  said, “Ongoing job growth, low mortgage rates and rising incomes are contributing to a firming housing market and economy.” He added, “Though some areas are recovering faster than others, the overall trend is positive.”

Here are three trends that are expected to have a significant impact on housing over the next 12 months:

1. Demand will continue to drive prices up

According to President of the Federal Reserve Bank of Atlanta, , there is currently only a five-month supply of inventory. Speaking at the 2016 REALTORSŸ Conference & Expo, Lockhart shared that even though there were approximately 1 million new residential construction projects this year, about 1.4 million to 1.5 million households will be created every year, through to 2020. The resulting shortage will likely lead to price increases.

“Less inventory means somewhat larger price increases and lower sales of existing homes,” echoes , a financial and housing journalist at Kiplinger.

A lack of available land, coupled with low inventory will also continue to drive prices up in Canada in 2017. This is according to PwC Canada and the Urban Land Institute’s .

2. More millennials will become homeowners

Noting that 30% of millennials live with their parents, Lockhart also stated that they do want to create their own households.

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“The housing market over the next couple of years should get a big lift in demand from these new buyers,“ says , the National Association of REALTORS¼ chief economist.

Yun also believes that affordability issues and the low inventory affecting buyers in several markets will gradually decline, opening up the housing market.

In Canada, the Bank of Montreal’s  indicates that 76% of millennials are looking to purchase a home within the next five years. However, with affordability continuing to be a problem, especially in hot markets like Toronto and Vancouver, they’re being forced to be creative and will likely continue to fund their property purchases through crowd-funding and co-living, and to  ČčČÔ»ćÌę.

3. Mortgage rates will increase

Stateside, Yun predicts that mortgage rates will increase gradually, with the 30-year rate rising to 4.1% next year and then 4.5% in 2018.

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offered a more conservative prediction and is expecting the 30-year fixed-rate mortgage to average 3.9%.

 also expects mortgage rate increases.

“We anticipate that mortgage rates will rise from their current lows with the five-year qualifying rate reaching 5 per cent [sic] by the end of next year.”

The association anticipates the one-year rate rising to 3.4% by the fourth quarter next year.

Questions about housing trends in your area? Ask them in the comments section below.

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On Thursday, June 23, 2016, 52% of Britons voted ‘yes’ to a referendum proposing that Britain withdraw from the European Union, an economic and political partnership of 28 European countries. Brexit, or Britain’s Exit from the EU, triggered uncertainty about future economic relations with the UK and EU, and sent shockwaves throughout the world.

Shortly after the results were revealed, David Cameron announced his intention to resign as Prime Minister, the British Pound dropped to Ÿ±łÙČőÌę, and UK stocks fell drastically as well.

Noting the importance of the UK to the global economy, the  and financial experts worldwide are predicting what effect the EU referendum will have on their own regional economies.

But how will Brexit affect the real estate markets in Canada and America?

Mortgage rates will drop

Mortgage rates fell following the Brexit vote, and according to , the chief economist at Realtor.com, mortgage rates haven’t been this low since 2012.

“Lower rates produce lower monthly payments and greater buying power — those who are well qualified can afford a home that’s 8 percent more expensive than at the beginning of the year. That’s more than enough to offset the rise in prices during that time,” he says.

Buyers who can lock in financing at these historically low rates will end up , and financiers have already reported seeing an  post-Brexit.

However, Smoke adds that the low rates come with tougher credit restrictions, so buyers who don’t need financing, have excellent credit or can afford to put 20% down will have a distinct advantage, as will individual investors because they typically have more capital available than other buyers.

Interest rates will remain low

In Canada,  believe that Brexit will result in pressure to keep interest rates low.

Following a “leave” vote economists Douglas Porter and Robert Kavcic predict that The Bank of Canada “will remain on ice even longer and Canadian rates will again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus further fanning the flames in the domestic housing market.”

Prolonged low interest rates may push housing prices out of reach for younger homebuyers, particularly those in Toronto and Vancouver where real estate prices are said to be outpacing local economic fundamentals like income growth and job creation.

Property values will rise

Home prices across Canada are expected to rise an average of 12.4% from 2015 according to a . Forecasts indicate that Vancouver properties will increase by 27% and Toronto houses with increase by 14.9%, making an average home purchase C$1.2 million and C$718,000 respectively.

Rising property values may seem like good news to homeowners, but  warns that it could hurt the housing market in the long run because the increase is a symptom of a struggling global economy.

Stateside, home values are also expected to increase due to lower mortgage rates and an influx of foreign capital. Experts are concerned about what this will do to housing markets in hot investment cities like New York, San Francisco and Houston.

“Foreign investment can create a housing bubble in certain areas, making it difficult or practically impossible for Americans to buy a home in their own country,” says , a real estate blogger and long-time landlord.

are also expected in these areas as a result of an increased number of foreign investors buying up properties and turning them into rentals.

What to expect next

The UK has to formally notify the European Council of its decision to leave the EU, after which a negotiation for its withdrawal will begin. This process, outlined in an agreement called , could take up to two years.

According to , legal counsel for the UK government, the administration does not plan to initiate their departure from the EU this year, but there is speculation that the process will begin early next year.

Experts are saying that it could take the UK up to , with uncertainty and volatility being the only certainties during this time. So whether you decide to cash in on your home’s increased market value and sell it to investors, or refinance your home to lock in a lower mortgage rate, you’re encouraged to do your due diligence to ensure that you’re making informed decisions that make the best financial sense for you.

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