2017 Real Estate Home Sales Outlook

By
Services for Real Estate Pros with Get It Done For Me Virtual Services DRE# SL641317

2017 Real Estate Home Sales Outlooks and Trends: 

 

  All real estate is local. What happens in one area may not necessarily happen in another area. Real estate is also hyper-local, there can be pockets of certain trends even within a city or tow which are unique. 

 

This post is more in general terms. Seek the advice of your neighborhood real estate professional to verify and determine the marketing trends for 2017 as well as what happened in your area in 2016. 

 

2017 is not projected to be any sort of robust year in real estate nationally.

 

There are several reasons for this:

  • Consumer confidence in home ownership is down. It is especially down in western coastal areas for young people who don't feel they can afford to buy a home with the way the prices are increasing, and pricing them out of the housing market. 

 

  • Interest rates will also impact home sales because as interest rates rise, so do mortgage rates. The Federal Reserve did not want to do anything with the interest rates during an election year. They have been saying for some time that rates need to go up, but they kept them down, well, of course, until now.

 

Now that the election is over, they will adjust the rates handing over higher interest rates to the incoming President to deal with. 

 

  • Higher mortgage rates will keep sellers from listing their homes for sale. In many cases, a homeowner puts up his or her home for sale to either scale down and buy another home or upscale into a bigger home. These two scenarios don't look good in the midst of higher interest rates. 

The Federal Reserve is expected to rate the rates a few more times to 1.25 % which will create mortgage rates of around 4.6%. 

 

Sellers will look at their current interest rates, especially those who have refinanced in the last few years.. and compare them to what their new rates will be.. and decide.. to stay instead of sell. 

 

Rents and home prices are quickly outpacing incomes and that is never a good thing for home sales. 

 

NAR chief economist, Lawrence Yun, is optimistic, however, remember, that is his job to be so. You don't want to let down about one million members and give them doom and gloom, rather build up their spirits and show the silver lining. That is his job. 

 

Anyways, he says that the new economic stimulus from the incoming administration  and job growth will encourage young people to buy homes.

 

But he also warns builders that these homes need to be affordable. Millennials are entering their prime home buying years. But they need homes they can afford to buy. 

 

Renters who think it is a good time to buy have dropped. But rents are also going up. 

 

It is most likely the best time to buy a home now instead of continuing renting. At least even with a slightly higher interest rate, the ownership of a home gives stability in knowing what your monthly payment is going to be every month and every year. 

 

Some analysts say it is not going to be the rising home prices that will be a problem in 2017 but rather it will the the rising interest rates. 


What have you noticed are the trends in your market? 

 

 

 

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Re-Blogged 1 time:

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  1. Barbara Todaro 01/03/2017 03:49 AM
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Rainmaker
4,048,695
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

You always provide good information about your housing market. Anyone thinking of buying or selling a home in your market area should call you.

Dec 27, 2016 12:44 PM #1
Rainmaker
1,084,590
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Nestor & Katerina Gasset - Great information on expected real estate trends.  I hope we all have a good year ahead of us!

Dec 28, 2016 02:51 PM #2
Ambassador
1,390,248
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Because Oklahoma City is still affordable and rents are stable to rising, we are getting more out of state investors buying here. It will be a robust year for me and as you said, it is local.

Jan 01, 2017 06:04 AM #3
Rainmaker
437,409
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

We agree with your outlook and the situation buyers are facing.  Here in the Vancouver WA (Portland metro) market we've had strongly rising prices since 2012, with the pace picking up in 2015.  The inventory level is in the low 1.x months, with DOM - Averaging about 20 days; with the Median under 10 days!

It would be OK with us if our market would slow down just a tiny bit!

Much success to you in 2017!  John and Kat

Jan 02, 2017 02:44 PM #4
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Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Alexander- Slocum  Yes, I know your area very well.  My sister lives there, so does one of my sons and another brother lives in Tacoma and another brother lives in Beaverton. 

That happened the last time I was in Lynnwood, I would just sit in the real estate office, and the sellers would walk in, list their houses, and we would sell it the next person who walked into the office without even putting the listing in the MLS. That was during the California expat rush to Washington in 1989. :) 

Jan 02, 2017 04:50 PM #5
Rainmaker
1,720,601
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Good information to share and I have felt it in my area throughout 4th quarter 2016..I watch & analyze stats a lot and I see a continued tight market in RI in this year, Katerina.  No sitting on your laurels here!

Jan 03, 2017 03:58 AM #6
Rainmaker
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Lottie Kendall
Pacific Union International - San Francisco, CA
Serving San Francisco and the Silicon Valley

Remember the day when a 4.6% interest rate was considered heaven? In my high-cost area the biggest deterrent for first-time buyers often is the down payment. 

Feb 04, 2017 01:29 PM #7
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