Housing inventory is at historic lows. I have clients looking throughout the metro area. Do you know anyone who is thinking of selling? Sell your home without putting it on the market!
Please contact me!
Or visit sellingwithkids.com/homevalue to get a free market value analysis of your home.
2016 was a banner year for the Twin Cities housing market. Closed sales reached a 12 year high and prices reached a new all-time high. Low inventory and low mortgage rates continued to dominate the market pushing prices past peak levels of 2006.
What is ahead for 2017?
What can we expect from the housing market in 2017? Let’s take a look at some trends that will effect housing in the coming year.
Housing prices should continue to see gains although at a slower pace
- Housing prices have continued to climb after bottoming-out five years ago and but the pace of increase should slow to around 4% nationally.
- Market conditions will continue to favor sellers in the short term, however, inventory pressures may be eased as many homeowners have seen their home’s value return to pre-bust levels. This important psychological barrier may motivate previously hesitant sellers to make a move.
Mortgage rates will rise
- Economists predict that as the economy improves mortgage rates will rise throughout the year. Many economists predict rates reaching 4.5% by the end of 2017.
- How rising rates will effect housing sales remains to be seen. If income growth continues, rising rates will likely have more effect on refinancing than home buying activity.
Millennials and first time home buyers will dominate the market
- Although rising interest rates will affect affordability, millennials are expected to be the largest segment of buying market in 2017. Increasing income and rising rates may act as motivators to get millennials of the fence and into home ownership.
- Millennials have been skipping the traditional starter home (of which inventory is particularly low) and purchasing what used to be considered a first move up home.
Overall, 2017 looks to be a solid yet slowing year for the housing market. Slowing price gains and increased inventory should bring more normalcy. For additional info on your neighborhood’s housing situation, give me a call.
I’m sure this isn’t a reflection on the house.
The story has remained consistent as concerns residential real estate. In year-over-year comparisons, the number of homes for sale has been fewer in most communities. Meanwhile, homes are selling in fewer days and for higher prices. This hasn’t always been the case, but it has occurred with enough regularity and for enough time to make it a trend for the entirety of 2016.
Financial markets were volatile in the days surrounding the presidential election, but
they self-corrected and reached new heights soon after. Long-term indicators of what it
will be like to have a real estate developer for a president remain fuzzy, but the outcome
is not likely to be dull. Prior to the election, trend shift was hard to come by, and
unemployment rates have not budged since August 2015. Post-election, mortgage rates
are up and so are opinions that a trend shift is likely in the near future. Read the full report here. Source: MAAR
Wishing you a merry holiday season!
Wishing you the happiest of Thanksgivings!
Financial markets are still processing the effects that President-elect Donald Trump will have when he officially takes office in January.
In the aftermath of Trump’s victory last Tuesday, the stock market rose sharply, reaching record highs late last week. But the stock market isn’t the only thing that’s on the rise since Trump won; mortgage interest rates are skyrocketing as well.
According to data provided by Zillow, the 30-year fixed mortgage interest rate spiked in the aftermath of Trump’s election, rising from 3.38% on Tuesday to 3.8% on Monday morning.
……The jump from 3.38% on Tuesday to 3.8% on Monday represents the largest one-week jump in interest rates seen on Zillow Mortgages since July 2013, when mortgage rates jumped 68 basis points in the wake of the “Taper Tantrum.” Read the full article here.
Expect rate volatility in the coming months as the market digests the future administrations plans.