In light of recent events with the Fed raising interest rates, it's only appropriate that we bring up the question on everyone's mind - what do we expect the market to look like in 2017? Lately, home prices and sales have been accelerating, but will this continue into the new year?
While the strenuous process of bidding for a house (sometimes above the asking price) is not expected to change, the acceleration we've been seeing recently isn't anticipated to get much worse. According to the latestsurveyconducted by theNational Association of Realtorsof 2,800 U.S. households from October to December, we're likely looking at a smaller increase in sales in 2017. In comparison to the sales price growth of 5% this year, it's presumed that 2017 will slow slightly to a 4% increase.
Nonetheless, the recent raise in rates has already begun to affect those looking tobuy a home, as current mortgage rates are making it more difficult to qualify for a loan. Because of this, would-be first-time homebuyers may be rethinking buying and fewer homeowners are refinancing their loans. Thus, lenders are beginning to make more loans to individuals with lower credit and higher debt-to-income ratios. Still, a vast majority of the U.S. believes it is a good time to buy a home and this optimism means the market won't be slowing too noticeably.
Author:Kurt Galitski DRE 01348644 Phone: 714-957-6677 Dated: December 20th 2016 Views: 16 About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...
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