The New Year is often the best time to start new ventures. If one of your resolutions this year is to sell your home or property, here are some market shifts you will want to be aware of before contacting a listing agent.
Analysts see a recession occurring in 2017
According to Yahoo Finance, a group of surveyed market analysts agreed that the real estate sector should be a little pessimistic about the economy in the near future. They say this is primarily caused by global uncertainty, leading investors to turn away from U.S. real estate. In this tricky environment, it’s important to know exactly how to approach the market; Alaris Properties would be happy to help you navigate stormy waters.
- Housing market is already near pre-recession peak
Home prices have continuously posted steady year-over-year gains, accumulating into near pre-recession highs over a 53 month period. The median price for single-family homes is around $226,000—a 7% increase from 2015. This will eventually cause market normalization and stagnate price growth.
Home appreciation might slow, but not stop
Bloomberg anticipates home appreciation to slow down 5% in six-months to 3.5% in 12-months. This deceleration could be propelled by rising mortgage rates, markets hitting affordability and inventory constraints.
Rising renters market
National rent averages have skyrocketed over recent years, leaving many would-be purchases with a very pricey decision to make. If you are on the fence about buying a home now instead of continuing to rent, call Alaris Properties today and let one of our agents help you look at your options.
Continuing low mortgage rates
Currently, mortgage rates are low enough to stimulate affordability despite rising costs of homes. These rates make it easier for investors to begin their real estate ventures, without affecting demand. Rates are expected to rise, so this could be an excellent time to buy a home or refinance your current home.
The housing market is due for a period of slowed growth, but it is surely not going to plateau anytime soon. Now is a great time to maximize your return on investment potential.