2017’s housing market will be influenced by mortgage interest rates increasing, a changing composition of buyers, and continued tight inventory. The low inventory should keep prices rising, but only as long as demand continues to grow. Buyers are emboldened by strong employment and strong economic growth.
Average Sale Price +5.93%
Total Home Sales +2.67%
*Data based on Realtor.com housing forecast
We anticipate a continued rise in interest rates that began after the presidential election. The Federal Reserve raised short term rates 0.25% in December, only the second rate hike in a decade. Policy makers indicate three more hikes coming in 2017. A 30-year fixed rate mortgage averaged 4.32% at the end of December, up from 4.01% a year earlier. We expect the increase to be greater this year.
Houses are definitely selling. If your house has been on the market for any length of time and has not yet sold, perhaps it is time to sit down with your agent to see if it is priced appropriately to compete in today’s market. If you’re not on the market yet, list early in the year to beat the Spring rush. SEE: The Ultimate Guide to Selling Your Home
Your buying power will be reduced by rising interest rates throughout the year, which means you should buy sooner in the year than typical. Waiting around too long, could cause you to miss out on a price point due to the added mortgage costs of high interest rates. SEE: The Ultimate Guide to Buying a Home
Every Market is Local.
Woodstock is different than Canton is different than Marietta is different than Waleska, etc… Be sure to check your local market reports weekly if you are considering a move in 2017. SEE: North Atlanta Market Reports