This is the time of year for reflection on the year that's past and planning for the year to come. Our principal at GCIP, Tim Savage, mandates every Realtor at our company make a business plan for the upcoming year. It's important to understand the real estate marketplace when planning for the year to come. Below you will find the National Associations 2017 forecast as published by them today. Also, you will see a link to the entire article. If real estate is your passion take the time to read in its entirety.
The 2017 housing market will be a year of slowing, yet moderate growth, set against the backdrop of a changing composition of home buyers and a post-election interest rate jump that could potentially price some first-timers out of the market, according to the Realtor® 2017 Housing Forecast released today.
The report also predicts the top five housing trends of 2017, as well as home prices and sales for the 100 largest metros in the U.S.
2017 National Housing Forecast
The 2017 national real estate market is predicted to slow compared to the last two years, across the majority of economic indicators. Home prices are anticipated to increase 3.9 percent and existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent due to higher expectations for inflationary pressure in the year ahead.
Realtor® is forecasting the homeownership rate will stabilize at 63.5 percent after bottoming at 62.9 percent in 2016. New home sales are expected to grow 10 percent, while new home starts are expected to increase 3 percent. The forecast is based on GDP growth of 2.1 percent, a 2.5 percent increase in the consumer price index, and unemployment declining to 4.7 percent by the end of the year.
Warmest Regards,
Kevin Aizenshtat
Realtor