What Will 2017 Hold For Real Estate…
By all forecasters, 2017 looks to be another fairly steady year in real estate. This column believes that prices will flatten out, prompted mainly by some very slow, but probably steady rise in interest rates. Most are aware that the Feds raised rates the last meeting of 2016 and indicated there would be at least two more coming in 2017.
We have heard such rumors before, we will all watch to see if they come to fruition. One thing is certain, if anyone is thinking of buying or selling, this first quarter could not be a better time. Why? Well, the obvious…do it before rates rise again. If you are a buyer, you could see your purchasing power diminished; if you are a seller, you could see your potential sales price flatten if rates do rise and the buyers cannot afford the same amount of home with the rise in interest rates. Higher rates have always had the capability to keep a lid on home prices.
Demand should stay high and career Millenials get further settled in their careers and with incomes on the rise, particularly at the end of last year, watch for many of them to seriously start looking for a home, or to upgrade their starter condo, into a single-family home. Remember, Millenials think renting is a waste of money, and they’re not wrong about that. Expect to see Baby Boomers continue to downsize, utilize Proposition 60/90, and seed the market with much needed inventory. Prices likely will not drop significantly due to tight inventory. All in all, 2017 should shaped up to another great year that is fair to both sellers and buyers, what is called an equitable market.