The 2016 real estate market was quiet a success. Interest rates were lower than they had been since the 50’s. Home values exceeded expectations and an end was in site to the housing recession. With the federal housing administration offering grants and low interest rate loans there was a monumental increase in first time homebuyers. With this in mind there are some Real Estate trends to consider as we enter the spring real estate season.
Increased Home Prices
As with 2016, home prices will continue to rise however it will happen at a more gradual pace. With the buying demand already starting 2017 at a rate that is above 2016 it isn’t a surprise that there will be an increase in the median home price. Many industry experts expect the increase in home prices to be upwards of five percent.
Increase in Inventory
Interest rates are currently low. In order to take advantage of these lower interest rates more and more renters are looking into purchasing homes right now. The same is true of many current homeowners looking to upgrade. The one disadvantage to this for first time home buyers is that the inventory of homes within the low to average price range is low and moving quickly when it does hit the market. The inventory of homes is expected to increase in 2017 but is still at a historical low.
Volatile Mortgage Rates
Mortgage rates remain low even with the slight increase that occurred following the 2016 election. This was only the second time that we have seen a rate increase in housing interest rates in a decade. It is important to note that the Federal Reserve, who controls the rise and decline of interest rates, has stated that they expect interest rates to increase at least three more times this year. Realize however that these rates even with a few small increases will still be less than we have previously seen.
Availability to Credit Will Improve
With a new president in office there is talk of rolling back many of the financial regulations that were put into place post-crisis in the Dodd-Frank Act. This means that the regulations on lending the banks are currently under would be removed and less strict rules would take their place. It is also speculated that the new president would make moves to return mortgage companies that are government-controlled to the private sector.
Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.