While there are still many unknowns as to what impact a new administration will have on the real estate market as the policies that affect our economies are still being formed, here is a broad overview of what you can expect if you are buying or selling a home in the year ahead:
Interest rates will be on the rise – There has been a rise in interest rates over the last few weeks and the Federal Reserve just raised the short term interest rate at their December meeting which should impact mortgage rates. It would not be surprising to see interest rates closing in on 4.75% by the end of 2017.
The inventory challenges of years past will not disappear in 2017 – There is a five million unit deficit in new housing units which is not expected to lighten up until at least mid-2018. Inventory will still be a challenge in 2017 which is great for sellers who are buying in a lower-demand price point, buying a housing product that is in lower-demand, or buying in an area with lower-demand.
The best time to invest is still right now – With the lack of inventory and prices and interest rates on the rise, your real estate investment dollar will likely buy you more today than it will tomorrow.
I am excited for the opportunities that lie ahead in 2017 and welcome the opportunity to discuss the state of your current real estate investment so you can plan better and determine your updated net worth! Call or text me: (206) 730-0962 or send an email to: firstname.lastname@example.org.