With just one more full day left in 2016, it's time we started to look forward to prospects for the Albuquerque area real estate market in 2017.
With a new president being sworn in on January 20th, there's no question that next year will see a range of changes to the landscape we've all been accustomed to in recent years.
Exactly how those changes will affect the real estate market remains to be seen, but one thing we have already witnessed is that financial markets have expressed confidence in the way forward. That's what's led to the stock market rally since the election, with the knock-on effect of mortgage rate rises.
And while some will cite mortgage rate hikes as a negative for the New Year, let's not forget that it's confidence in jobs and the economy that leads investors to make riskier decisions and not seek comfort in safe-haven bonds, which generally reduces mortgage rates.
In other words, and as ever in this world, it's simply not possible to have everything. So while nobody welcomes rate rises, they are a direct result of more confidence that leads more people to invest in a home of their own, or to move upscale.
Greater movement in the housing market is likely to be vital to the fortunes of Albuquerque real estate in 2017. The supply of homes available for sale has been an issue of growing concern in recent months, so if improved confidence leads to a greater fluidity of inventory, this can only be a very good thing.
We've seen excellent demand for homes and homes selling in fewer days, plus good price growth and there's no reason to think that any of this will come to a sudden halt.
As renting gets more and more expensive, so the attractiveness of owning a place of one's own grows. Demand for rentals remains very high, as not everyone can afford to buy, sadly. In fact one of the few virtual certainties in life is that rents will continue to rise. This means home ownership is still so attractive, even in spite of the recent correction in mortgage rates, as it's still possible to lock in an historically low rate for the life of the home loan. Try asking your landlord for that kind of promise...
Little wonder, then, that we've seen such a renaissance of first time buyers recently. And according to the National Association of REALTORS®, next year is going to see even more millennials buying a place of their own.
And let's not forget the findings of a recent report by Corelogic that predicts homeowners' net worth to rise by 5.2% in 2017.
While next year is inevitably likely to have a somewhat different set of dynamics than the ones we've gotten used to in recent years, most experts agree that it's onwards and upwards in the world of real estate.
Why not contact us today to informally discuss your best path in 2017.
Can we also take this opportunity to wish you and your family a very healthy, happy and successful New Year.