Hastings Hammock: Leisure Living in Fleming IslandJanuary 22, 2017
Love Your HomeFebruary 13, 2017
I am always interested to hear what the real estate and finance pros think about the real estate market at any given time of year. And, with the start of 2017, and a new president, it’s a good time to check in and see what’s expected.
According to an article in Forbes, here are a few trends housing experts expect in 2017:
- “Prices will continue to rise – but more slowly.” Even though sales growth is slowing, homebuyer demand is strong, so home prices are expected to continue inching up.
- “Affordability will worsen.” With the percent of new listings in the lowest price tier declining over the past five years, the share of affordable homes for someone earning a median income is decreasing. This leads to fewer people able to afford buying their first home.
- “Mortgage rates will be volatile.” While rates are still low, experts are expecting some erratic changes this year, with expected rates landing between 3.75% to 4.6% - similar to where they are now.
- “Supply will improve but remain short.” 2016 dealt with a declining inventory that increased home prices. The strong demand should encourage construction, but not necessarily for homes median-income buyers are looking for as builders often invest in building high-end homes that bring a better return.
- “Political uncertainty will be replaced with policy uncertainty.” President Trump expressed three policy priorities during his campaign that are expected to impact the housing market: Spending more on infrastructure, cutting taxes, and cutting down on immigration. While these changes may create a positive effect in the real estate market, the question is how they will affect the housing market long-term. For that, we may need to wait and see.
While it's hard to say exactly what will happen in the future, we do know that right now with interest rates still low, and demand high, if you are looking to buy or sell your home, this is a good time. Let’s sit down and review your goals and needs, and find the best option for you!