The big holidays are right around the corner. Along with the eggnog, holiday shopping, and countdown to the new year, comes the predictions of the housing market for 2017. Luckily for you, Windermere’s Chief Economist, Matthew Gardner, has been giving his annual forecast to a variety of real estate and financial organizations. It’s always difficult to predict the future, but based on what we do know today, here are some thoughts on the current market and what you can expect in the new year.
Housing Affordability: This continues to remain a big concern for many west coast cities, as some markets have seen home prices escalating above income growth. We all know that this is unsustainable over the long term, so, luckily, it is believed the rate of growth will begin to slow and price appreciation will soften.
Housing Supply: In 2016, home prices and sales rose while listings remained the same. Hopefully, in 2017, there will be an increase in the number of homes for sale, hopefully, relieving pressure.
First-Time Home Buyers: First time home buyers should be abundant come 2017, and it’s a good thing. First-time home buyers are mandatory to achieving a more balanced housing market. While rising home prices and competition will act as an obstacle to some first timers, the increase in housing inventory should help alleviate some of the challenges.
Interest Rates: Although interest rates remain remarkably low, they have begun to increase since the election, and they will continue to increase through 2017. Matthew Gardner believes the 30-year fixed rate to increase to about 4.5 percent by year’s end. Yes, this is well above where interest rates are currently, but it’s still very low.
Alas, it is continually heard that there are concerns about an impending housing bubble. While price growth should grow in certain areas, the floor should not fall on housing prices. There should be a slight shift towards a more balanced market in the year ahead. So, all in all, 2017 shall provide yet another good real estate market.
Spring and summer usually get the most attention for home buyers and sellers. It’s no wonder why. It’s hot, the kids are out for summer, and what better way to spend your Sunday than walking around to open houses? So, it might come as a surprise to you that fall may actually be the best season to buy a home. Let me tell you why.
- Not as much competition. Like I just stated, people love to buy homes in the spring and summer because the temperature is great! What that means for you? Fall will bring you less competition, AKA less bidding wars for you to lose your favorite home to. So, stay strong my friends. There may not be as many homes, but patience and perseverance will pay off.
- Seller’s are easier to negotiate with. Imagine you’re a seller trying to get someone to buy your home before the colder months hit. If you’ve had your home on the market all summer, then chances are you are going to be pretty desperate come fall. Now, imagine you’re a buyer. You see a home that’s been on the market for three months, you will most likely give an offer lower than asking price and chances are you’ll come to an agreement in your favor.
- Fall comes with lower home prices. According to RealtyTrac’s analysis of more than 32 million home sales over 15 years, October is the best month to buy a home. Their data showed that during this month, buyer’s paid 2.6 percent below the estimated value of the home. Talk about a switch from spring and summer where sellers are getting asking price or more.
- The holidays are creeping up. Use this pre-holiday window to give fast closings and make your offer look appealing to the seller. How can someone think of presents when they have a home to sell?
- Those things called taxes. Most people won’t accept an offer just for this reason, but selling a home during the end of a fiscal year does have some added benefits. A seller you may be able to take some nice tax deductions, including closing costs, property tax, and mortgage interest, to offset their taxable earnings.
- Black Friday. If you buy a new home in the fall, you will be spoiled with the deals of Black Friday and other holiday sales. Think brand spankin’ new refrigerator for a great price.
Well, folks, if that doesn’t convince you that fall is the best season to buy, then I am not sure what does. Contact me so we can start viewing homes! Get a head start by browsing our active listings here.
Maybe it all started when I was a kid and would watch my mom rearrange our house for the 20th time to make the interior design just perfect. Or, perhaps it started when my aunt and uncle jumped into the world of real estate and their lives lit up. Either way, I knew for a long time that real estate was an adventure I wanted to tackle.
And here I am — a Realtor for Windermere. It might be coincidence that my aunt is also an agent for Windermere in California, or it may just be that we are attracted to great companies. That said, I made it, and I am excited to partake on this journey with you. Whether it be finding your dream home, selling your home to move into your dream home, or finding that investment property to make your wallet proud, I am officially your girl. You can look to me for any of your real estate needs and I promise I will deliver.
I get it. You don't want to hire a girl you don't know, so let me tell you a little bit about myself. I grew up in California, moved to Boulder, CO for college, traveled Central and South America and Southeast Asia for two years, met my husband in Peru, then moved to Utah to start my career and get married. How was that for one sentence? All in all, I love to travel (especially around Utah), drink coffee, take photos, meet strangers, talk to friends and family and work hard. But, what I really love most is making you happy. I will work my hardest to make sure you are happy and get what you want. So, let's meet — get coffee (or tea) — and talk about your needs. I can't wait.