3 Key Points about 2017’s Housing Market from a recent article in The Washington Post
In his recent article with the Washington Post, David Charron, president and chief executive of Rockville-based multiple-listing service MRIS, shared what we can expect to see in the housing market in 2017. While geared towards the Washington-area, it is also pertinent to other areas of the country, including the Golden Isles. To summarize, although mortgage rates will climb, inventory should improve and buyers will have more options for financing a home. Here are 3 key points we would like to share from his article.
Interest rates went up right after the election, and have continued to increase in the subsequent weeks. The Federal Reserve rates will be going up as well. What does it mean for the real estate market? Charron thinks that rates will continue to rise in 2017 if the economy continues to improve and inflationary measures increase. And in this type of environment, it’s typical that buyers will look to make a move early in the selling season in order to lock in lower rates. Get ready for a face-paced market with homes going under contract quick and reaching a settlement date fast!
Supply and Demand
Supply of housing inventory decreased during 2016, but Charron states that inventory will likely increase in the new year. “Sellers have regained enough equity in their homes to feel comfortable putting them on the market.” Other reasons sellers may list in the new year include the anticipated increase in the overall cost of buying a home and the potential for prices of homes to decrease considering the rises in rates.
Competition is good. Rates are increasing, however there are more lenders in the market with new competitive programs for buyers to consider. The Federal Housing Finance Agency announced an increase to lending limits for next year, the Federal Housing Administration loan limits are also expected to increase, and non-traditional businesses have gotten into the lending game.
What can we expect of the housing market in the Golden Isles this year? Only time will tell. One of our main goals at Hodnett Cooper is to provide our clients with the right information in order to make a decision about buying or selling in the Golden Isles. Please contact one of our real estate market experts for more information about our market or to arrange for an evaluation of your property.