Housing Outlook 2017

Here’s what the experts expect to see in 2017:
1. Rising prices will keep pushing up homeowners’ net worth. Home prices are poised to rise another 5.2 percent through September 2017, according to a recent report from CoreLogic.
2. But mortgage rates are going up.
The Fed is expected to continue raising rates on a strong economy. The Mortgage Bankers Association was predicting that rates would reach 4.8 percent by the end of 2017.
3. It’s getting easier to get a mortgage.
It’s easier to get a mortgage now than at any time in the past eight years, according to the Mortgage Credit Availability Index. That reflects an increased availability of both jumbo loans and low down-payment loans.
4. It’s getting easier for first-time buyers.
After years of shutting them out, the market has become slightly more welcoming to first-time buyers. Millennials are more secure in their jobs, so they’re better qualified for mortgages, particularly the low down payment options.
5. New homes are getting smaller.
The median square footage for new homes this year fell for the first time since the recession. The shift also reflects a renewed focus by builders on the neglected market of entry-level buyers.
6. Inventory will remain tight.
Total housing inventory at the end of September increased 1.5 percent to 2.04 million existing homes for sale, but that’s still 7 percent lower than last year. That continued lack of inventory is one of the main factors behind rising prices.
7. The share of cash buyers will move closer to normal.
All-cash buyers fell below 30 percent of home sales this year for the first time since 2007, closer to their historical average of about 25 percent, according to CoreLogic.
8. Foreign buyers will play a smaller role.
9. Rents will continue to level off.
While rents in most large metro areas will continue to increase next year, they’ll grow at just 1.7 percent next year, according to Zillow’s rent forecast.

Posted on January 30, 2017 at 7:56 am
Nancy Low | Category: Buyers, News, Sellers

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