The Year Ahead. What 2017 might mean to you, your home and your other real estate investments.

What are the experts saying about the new year and what you can take away from it.

First of all, let’s take a look at the value of your home. Now there, I have some good news for you. Prices in most parts of Texas and America are expected to keep rising in 2017. The reason is that there aren’t enough homes for sale. But there are still plenty of buyers out there. So the laws of supply and demand are in your favor if you own a home or plan on selling one. Now, it won’t be a huge increase. The National Association of REALTORS believes that by this time next year the median price of a home in the United States will go from its current point of $232,200 to $241,250. That’s an increase of 3.9%. Now it’s not a spike, but after all, up is up. That’s good news for owners who have even greater equity in their homes and investments. Also for sellers, who will see those profits at the closing table.

Now, that low inventory and rising prices are expected to create challenges for home buyers. Especially first time buyers. But, those buyers do have factors in their favor. For one thing, most mortgage lenders are allowing lower credit scores and lower down payments. Up to now, home buyers have enjoyed record low interest rates. Well that’s about to change. Interest rates have started to rise. Not by that much, but they are on the way up. They’ve gone up about half a point since the summer. By the end of 2017 they’re expected to be a half point higher than that. The days of record lows may be behind us, but even so, the rates will continue to be incredibly low and not a barrier to home ownership.

Experts believe there could be some really good news for buyers coming down the line in 2017. And that is more homes are expected to come on the market. That means more choices, less competition, and all that added inventory should help curb those rising prices. You see, the nations home builders are predicting that in 2017 they’ll finally be on tract to build more than a million new homes. That’s up there from after the slump they had after the downturn. Not up there all the way since the home builders ordinary would put up a million and a half homes. But again, up is up and new home construction is headed in the right direction.

So buyers who hang in there might do okay. Especially if they end up getting a home of their own. That would make 2017 a great year. And even better if they are moving from renting to buying because rents are expected to continue to rise throughout 2017.

So, what’s the bottom line? Well in prices, interest rates, mortgage rates, mortgage availability, and inventory we’re seeing positive changes on the horizon. Not massive, epic changes, but slow, steady movement back to be what could be considered a normal market. A balanced market in which buyers and sellers are on more equal footing without either being at a big disadvantage. You could call that a healthy real estate market. And that’s a pretty great outlook as we approach 2017, the year ahead.

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