Happy Holidays! I hope you are out enjoying the beautiful valley and all that is has to offer! As we all enjoy the holidays with friends and family, we also get ready to ring in the new year. What will the new year bring in real estate?
Experts are predicting:
Mortgage rates will go up! (in fact the just went up a quarter of a point today) If income growth picks up then the interest rate rise will not affect refinancing or buying. However if it does not we can expect to see interest rates around 5% and a decline in the home purchases of 4%.
Inventory is expected to remain low through 2017
Sellers unwilling to budge-(With inventory low sellers should continue to hold tight to their asking prices.) This can be problematic in markets where the comparable sold properties make it hard to justify paying the sellers asking price. In our desert market buyers are still paying prices well below the height of the market so they should feel alright about paying a slightly elevated price from years past.
Affordability- With lower inventory on the ground we can expect prices to rise over this next year. How much your home will increase depends on where it is of course.
Millennials are expected to purchase a bit more this next year. Studies have shown they have been saving for the mid level home instead of buying at entry level due to the high prices and lack of inventory in the entry level the last few year.
High end housing is expected to see a jump in sales in 2017!
If you are looking to purchase a home or find out how much your home is worth, my contact info is below!
Jessica Bailey
Realty Executives-Top Producer-Executive Club -year after year!
jessiebaileyus@yahoo.com
213-926-6471