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Housing In 2017 Will Be A Sellers Market Lets Get Your House Listed
If you're planning to buy a house in 2017, be prepared for a rough ride. A number of factors are coming together to make buying a house particularly difficult (and expensive). It's predicted to be an especially tough year for first-time home buyers, who already tend to have a harder time than experienced home buyers. However, if you have thought about selling NOW IS THE TIME.
The Millennial Is THE BUYER
As you may know, they are out there. Yes, the Millennial is primarily responsible for the new buyer market. Technology is their friend and they are constantly looking for a new home. They love everything from retro to new builds and some even have the income to purchase the higher priced homes. They are looking for agents that have technology at their finger tips, with texting and advertising through the latest multi media sources. Yes your home in those pictures better look the best to get it sold, and pricing according to the market will drive up multiple offers getting you the best price possible. If you are looking to sell, NOW IS THE TIME and we need to talk! Don't wait, the more houses on the market the more competition you have.
Prices are up
As of October 2016, home prices nationwide had experienced a 5.6% year-over-year gain. The Pacific Northwest saw a particularly steep rise, with Seattle showing a 10.7% price increase and Portland close behind with a 10.3% increase.
"With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends," said David Blitzer of S&P Dow Jones Indices. Blitzer noted, though, that housing pricing can't continue to rise faster than both incomes and inflation rates indefinitely. That's good news for buyers in future years, but it doesn't bode well for 2017. What's more, President Donald Trump's decision to suspend the reduction in FHA mortgage insurance premiums will raise the payments on government-backed mortgages even higher.
Interest rates are up
The interest rate on 30-year fixed-rate mortgages has risen to 4.17% in early 2017, as opposed to 3.72% in early 2016. The current rate is not exactly stratospheric by historical standards, but the uptick is enough to make it a little harder to get approved for (and to pay for) a new mortgage. This is a particularly big concern for first-time home buyers, who already struggle to find affordable financing. It is still fluctuating but don't wait until it is too high and affordability is out of reach.
Demand is up
The climb in prices and interest rates seems to have many home buyers thinking, "Grab it now before it gets even more expensive!" According to realtor.com, home listing views in December 2016 were up by 40% to 80% compared to the same time in 2015, despite the fact that December is historically the slowest time of year for home sales. The high level of competition will inevitably make it even harder to buy a house.
Inventory is down
Realtor.com also reports that active inventory on the website was down 11% in December of last year compared to inventory in December 2015. And that's after 51 straight months of already below-normal inventory levels. As a result, 2017 is starting out with the smallest inventory of available homes since the last recession, if not longer. If you are looking to SELL lets get it on the Market. You have little competition and will have loads of approved buyers at your door wanting to buy, they have been waiting for YOUR home!
A perfect storm for home buyers
Rising demand, coupled with a shrinking supply, is the textbook definition of a seller's market. This is great news for anyone trying to sell their house, but not so good for buyers. If you're looking to buy a house in 2017, allow plenty of time to shop around for a good deal. As stated, inventory is low. Also get a mortgage pre-approval early so you'll be ready to buy the second you find the right house. I work with some of the most amazing and well respected lenders in the Denver area, the sooner you find out if you are approved the sooner you can beat this crazy market and get you into a house. Don't just assume you are able to get a loan. Home buying is a process and to start you MUST be approved first.
Our market has been the best it has ever been, with amazing buyers and sellers like you. With the right agent and proper direction you will be able to get into a home, or sell your home with confidence! CHEERS!
Information provided by Wendy Connick
As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....