Predictions for 2017 - What Are Your's?

By
Real Estate Agent with GreatWest Realty DRE# 00827565

http://www.myrljeffcoat.com

 

Real Estate Professionals often state they don’t possess a crystal ball when it comes to predicting what will manifest in future housing markets.  However, we can sometimes foresee trends that emerge from past cycles that provide glimpses of things that may come!  It is the sudden unforeseen events that can throw a veil over any handy crystal orb!

 

This month ActiveRain is hosting a contest for those of us who use the blogging platform.  The contest is titled, “What is Your Prediction for 2017.”

 

In the spirit of the contest, I have a few thoughts floating around in the fairytale factory of my mind!  They are based on what will go down in history as a very chaotic, politically charged 2016. So, buckle up!  Here we go!

 

Although the 2016 political campaign went on for what seemed an eternity, and although it sharply divided America along party lines, the outcome of the election will likely have little to do with our local Sacramento housing market.  Sacramento has experienced two years of low housing inventory, with high buyer interest.  Interest rates remained low during that time.

 

Janet Yellen of the FED bumped up the interest rate late in 2016, by a mere quarter of a percent.  Since I was first licensed as a Realtor in late 1981, when interest rates were at a historic high of 18 ½%, I have difficulty getting into much of a sweat when they are at the prolonged low rates we have seen these past several years.

 

Do I think interest rates will climb significantly, and put a damper on the housing market in this coming year?  No, I do not!  I don’t see anything on the immediate horizon that indicates the FED will rapidly increase interest rates into stratospheric realms!  And, I don’t see any indication of quick solutions for the shortage of good housing inventory into our local marketplace!

One key component I do have concern about, however, dwells with future generations of homebuyers.  Namely, the millennial generation, which has often found it more difficult to procure good paying jobs, while at the same time saddled with student debt.  Unemployment rates have steadily recovered from 2008 highs, but salaries have not enjoyed a similar outcome.

While 2016 equates to the year of chaos,  I suspect with the new president this month, we will finish 2017 as the year of unpredictability.

 

So, what are your predictions for 2017?  I’m anxious to hear!

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  1. Praful Thakkar 01/20/2017 09:56 PM
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Rainmaker
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Rebecca Gaujot
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
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Myrl, I just noticed that is your face in the photo...great job!

Jan 01, 2017 02:20 PM #10
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Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
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Myrl Jeffcoat 
Such a fun photo!!
Can you ship your Crystal Ball to Georgia for one week?
All the best - Lynn

Jan 01, 2017 03:40 PM #11
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much for sharing your thoughts. I have not yet looked at the January contests.

Jan 01, 2017 04:11 PM #12
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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Myrl hope your crystal ball is in good working order, and that you have an exceptional 2017.

Jan 01, 2017 06:39 PM #13
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Myrl Jeffcoat - with new captain of the ship, it is likely to be unpredictable. However, I am with you on one thing - rates are not likely to go crazy.

I know, you have seen so many seasons - this is nothing compared to 18.5%!

Jan 01, 2017 08:10 PM #14
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Myrl

Thank you for sharing your insight for 2017.

Good luck and success.

Lou Ludwig

Jan 01, 2017 08:34 PM #15
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
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May God Bless You with Great People, Health, Prosperity, and Experiences in the New Year!! 

Bob

Jan 01, 2017 09:24 PM #16
Rainmaker
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Myrl. I love your photo. I have no idea what the new year will bring but I am hoping to not lose Social Security.

Jan 02, 2017 06:17 AM #17
Rainmaker
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Eileen Burns
Trans State Commercial RE Ft. Lauderdale/Miami/Palm Beach - Fort Lauderdale, FL
FL Probate Agent, Hotel & Land Specialist

Myrl Jeffcoat I with you on interest rates....I remember double digit interest rates and people always buy and sell.

Jan 02, 2017 09:09 AM #18
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

I'm expecting 2017 to be a very good year.  And yes, folks need to keep the interest rate increase in perspective.  Heck, the lowest I'd ever seen was when I bought my second home in 2005 and got 5.5%.  That was amazing.  Hard to hear people complaining about 4%, but I guess them being held for so long in the 3's is contributing to that feeling.

Jan 02, 2017 12:56 PM #19
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Good Monday evening, Myrl. Have an outstanding week and a most productive January.

Jan 02, 2017 04:26 PM #20
Rainmaker
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Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Hi Meryl, your thoughts are very much appreciated as you respond to the Contest.  Unpredictability seems assured with an "Outsider" taking over the Executive Branch this month (I'd love it if they'd help us get back to 30 day closings for financed transactions!); and the challenges for Millennials with affordability slipping away quickly is not good for our industry.  We'll get working on our predictions.  Happy New Year!  John and Kat

Jan 02, 2017 05:10 PM #21
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It will be an unpredictable year ahead but that is some of what we had 8 years ago. Whatever happens i hope it will be good for the real estate industry and that health care will get more affordable.

Jan 02, 2017 08:14 PM #22
Rainmaker
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Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I love your photoshop crystal ball photo, Myrl. You would make a lovely fortune teller.

Actually, the rates bumped where they were last year at this time. I know this because I bought my house in Hawaii last year, same interest rate, same bump. They fell a little in early 2016, if you recall.

The problem, the way I see it, we are losing our middle class. Our present congress doesn't give a crap about that. I think inventory will remain tight because nobody wants to move up and builders aren't building fast enough. It will be a very competitive market in Sacramento.

What I am also seeing is with the advent of larger companies with big bucks paying for online advertising, and finding ways to refer out top producers and clients wanting to find the agents who are doing more of the business, well, the small-time agents will get squeezed, and in turn the top producers are getting squeezed, even with more business. So we have to work twice as hard to make the same amount of money.

Jan 02, 2017 08:49 PM #23
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-755-2905

Myrl, love that photo!!! Are you a palm reader, too??

Predictions, well, I just wrote what I'm seeing as winter trends for us at Fishhawk Lake. I've actually been spending more time doing that this last year as I saw a definite difference in the types of "living" people are looking to do--and one prediction for my area is that I see more and more full timers coming my way.

But, that's all I'm gonna report on at this point! I'm a take-it-day-at-a-time kinda gal. 

Jan 03, 2017 11:53 AM #24
Rainmaker
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Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Myrl, Thanks for your predictions for 2017. I am still thinking about my own. I agree 2017 will be a hard to make any accurate predictions. Like you I am happy the ekection is over with.. 

Jan 06, 2017 12:29 PM #25
Rainmaker
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Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

I just spent time lookking at your picture. You must have a part time job !! LOL!! ::))) 

Jan 06, 2017 12:30 PM #26
Rainmaker
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Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

God only knows Myrl-nothing is clear as we usher in the new administration except that we are in for a bumpier ride than ever before!

Jan 07, 2017 11:30 AM #27
Rainmaker
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Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

I am still working on my own predictions for RE in 2017. I think it is a very mixed bag in this area. 

Jan 10, 2017 02:34 PM #28
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

Myrl,

I like the picture! 

Without a doubt, 2017 is going to be a year of transition, not only in the political and policy arenas but also within real estate. It is driven by changes in legislative, MLS, and market forces. 

Feb 04, 2017 12:58 PM #29
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Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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