I have had a lot of questions in the last week about what 2017 will bring to our area for home sales. I put together a list of the highlights and predictions so far for this year.
Overall Outlook:
- The outlook for 2017 and beyond is good!
- Sellers are still holding back on listing homes, so inventory continues to be low.
- Thin inventory + demand = higher prices. Unlike 2016 when prices rose in many markets by 6%, in 2017 prices are predicted to rise 3%. They will fluctuate by market and price points.
- The market is also being influenced by mortgage rates.
Mortgage rates:
- 30 Year Fixed Rates will likely stay between 4.5% - 5%
- If rates go up to 5.5% or higher, that will be a red flag that will trigger a shift in the market.
- Regulation changes may make it easier for banks to lend by having more creative loans, but buyers may still be priced out.
- It is important to watch days on market and interest rates. If a property stays on the market for more than 43 days, the property is priced too high and/or buyers pulling back.
What's in?
- Pedestrian Friendly towns are the new luxury.
- Boomers are cashing out and millennials on the move.
- A market shift not in sight yet, but 2018 is the year to watch!
How will inflation impact the housing market?
If inflation increases the luxury market will rebound as money goes from equity to real estate for hedge. (When there is higher inflation, people want to get into safe havens like real estate.)
This is intended as a quick update. If you have any questions or would like to discuss any of these topics in more detail, please contact me at: 973-307-0023 or cheryl@thedarmaningroup.com
If you know anyone that would like to buy or sell real estate, please pass along my information!
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