2017 is right around the corner. Will this be the year to buy your second home, maybe in a suburban Arizona golf course community? Or should you sell your Scottsdale golf home and move up to an estate? What about taking the leap from renting to buying your first home? In part one of our glimpse into the 2017 housing marking, let’s take a look at what may be the biggest influence: interest rates.
A National Perspective on the Housing Forecast
First of all, rest easy knowing that experts are calling for continued growth in the housing market through 2017, although the growth may slow in some areas.
Here’s a look at the predicted stats for 2017, courtesy of Realtor.com:
- Home prices will increase almost 4%.
- Existing home sales will bump up almost 2% to a total of 5.46 million homes.
- Home ownership will stabilize around 63.5%.
- Interest rates could go up to 4.5%.
A big driver for change in 2017 will be the post-election interest rates. As we now know, the election had a considerable impact on many markets around the world. The real estate market included. Before the election, 2017 looked like it was going to be a standout year for first-time home buyers thanks to the demographics data and improving economy.
Mortgage rates have risen over the last few weeks and now with the prediction that they could possibly reach up to 4.5% next year, potential new home owners may have a few more hurdles before securing financing for their homes. More than 95% of first time home buyers need financing to purchase property and they report at least one financial challenge, according to realtor.com Chief Economist Jonathan Smoke.
The interest rate increase is in part due to the anticipation of stronger economic and wage growth in 2017, which is definitely good for home buyers, but could also make qualifying for a mortgage and finding something affordable a little more difficult.
But interest rates aren’t the only change coming next year. Coming up in part two of our look at the 2017 housing forecast are the trends we can expect in 2017. Who will be the dominating home buyers, and where will home owners want to live? Experts attempt to answer these questions and more as we come up on a new year.
Whether you’re looking to buy a new home or sell your current AZ golf home, the housing forecast is important to keep an eye on. And you can always consult with the Matheson Team for your specific questions or to search great golf listings!
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
480-405-4228
[email protected]
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