Real Estate Predictions for 2017
In the last several years the real estate market has been tumultuous at best. Wild swings in every direction imaginable. Although the market has settled down dramatically there are still factors outside the realm of real estate that has a significant influence on the direction real estate will go for 2017.
Like many REALTORS® I spend time reviewing real estate predictions in the hopes that I can get out in front of the curve of what is to come. And like many real estate professionals – I find myself saying, “good luck with that”.
- Housing Prices Nationwide to rise 3 % – 5%.
The predictions range from 2.7% to 5.1% nationwide. The report went on to say that “…we expect to see a broad spectrum of price increases and in some cases, price declines”. That just about covers everything!
- The Pacific Northwest will continue to be a hot market.
The one forecast that is relatively consistent is that the hottest markets will continue to be in the Pacific Northwest. Several models all predict the Pacific Northwest to continue to be a hot market going into 2017 with home prices increasing from 6.9% to 7.5%.
- Mortgage rates will continue to rise in 2017.
The Mortgage Bankers Association has predicted that home mortgage rates will rise in 2017 but will remain below 5%. That is still a very low interest rate. I should also add that the MBA also predicted that mortgages rates would increase in 2016, but that did not happen – rates actually declined in 2016.
- FHA and conforming loan limits could rise in some metro areas.
Most mortgage programs have size limits associated with them. For instance, there are conforming loan limits that dictate the maximum size for mortgage loans that can be sold to Fannie Mae and Freddie Mac and FHA and VA loans as well. All of these loan limits are based on median home prices, to some extent, and since prices have risen sharply in many cities, we could see some higher loan limits in 2017.
The most profound paragraph in the predictions that I reviewed stated: “Disclaimer: These U.S. housing market forecasts and predictions have been provided for your reading enjoyment. But you shouldn’t bank on them… They are the equivalent of an educated guess.”
So let’s talk about what we know about the real estate market. First of all, as with any investment it may go up and it may go down. In fact, over the life of a mortgage it will most likely go up and down. That is why a fixed rate is a better option.
But like most people, you are not buying this property just as an investment, you are buying a home where you will live and enjoy life. Buy wisely.
If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.