Today I’ll go over a quick recap for the 2016 real estate market and give you a look at what’s going on in 2017.
Today I wanted to give you a quick recap of the 2016 real estate market and give you some of my predictions for 2017.
2016 was a strong market, with median home values increasing 4.9%. They are expected to increase another 3.8% in 2017. Additionally, the average days on the market is 95 days, which is the lowest it has been in the past five years. These are indicators of a healthy market.
Our current market is beneficial for both buyers and sellers.
On the other hand, interest rates have increased, with the average conventional loan rate at 4% to 4.25%. If you are a buyer concerned about your monthly payment, now is the time to buy while interest rates are still low. For example, if you are looking to buy a $200,000 home with 5% down and a conventional loan rate of 4%, you’re looking at a monthly payment of $1,160. Interest rates are projected to increase from 4.5% to 4.75%, which could in turn bump that payment up to $1,244 if you wait.
If you’re a seller, now is also the best time for you to put your home on the market. There is a lot of buyer activity happening right now, as they want to purchase a home before rates go up again.
If you are looking to buy or sell a home, or if you have any questions, please feel free to give me a call or send me an email. I would be happy to help!