Most of us would have already decided that 2017 Real Estate is going to be super tough to get through, considering what 2016 trends in the industry threw on us. However, one thing we could be sure of is that there are going to be drastic changes in the real estate trends. We all know the fluctuations in the inventory of a globalized market. As the problem, i.e., lack of clear sight and positive solutions persist, the experts are now retracting their previous predictions that the market would see a sustainable equilibrium at any given point in the year 2017.
As A Start – The Pricing Factor
Pricing, being a crucial part of the inventory arena, the experts believed that the prices would drop down and the mortgage rates would take a drift, leaving the inventory to the bottom. However, it doesn’t seem to be going as planned. In the halfway through 2017, here is what the experts want you to expect.
Slower Market Growth
Affordability pressure might possibly sustain, which in turn, would result in a slower market growth. However, the growth will continue. As per a popular prediction by Redfin, the median home sale rates might top up 5.3% every consecutive year. In addition, the sales might see a rise of 2.8% approximately in the year 2017 after a 3.4% rise in 2016.
Mortgage Rates
Mortgage Rates are going to remain low. In fact, on an average rate, a general 30-year fixed mortgage is around 3.85% approximately and this is according to the Bankrate. Roughly, at the start of the year 2017, 4% fixed mortgage was found.
This situation has been consistent for quite a long time. In fact, these low rates have stumped the economists and related people for years now. Especially, since the Federal Reserve has come up with the interest rates for the short term period. This happened in December. As for a long run is considered, these continued action from the Federal Reserve is likely to help the graph line of the mortgage rates grow upwards. However, the investor confidence in the Government of the United States seems to be keeping the rates a bit low.
The US Treasury Bonds act as a benchmark for all the mortgage rates. If the investors draw their money back, then the rates are likely to hit the top immediately. This situation had happened following the election.
An Ongoing Housing Shortage
One positive prediction of the year 2017 that can become the biggest takeaway of the year is a shortage of affordable housing solutions. This issue made a serious impact on almost all the predictions made for the year. Be it slowdowns in the constructions or mortgage rate increases, all of it were affected.
The buyers will have the real benefit after implementation of the new plans. There would be a definite organizing body which would help the buyer in knowing the complete information about the project, promised amenities, etc. the developers would be forced to get acclimatized to the new systems.
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