The year has started with an upswing in stock prices, some dips here and there, but overall economic trends seem positive in terms of consumer spending and improving GDP. So how does the local housing market fare in light of these indicators?
2017 National Housing Forecast from Realtor.com
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.com® 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.
Condos spent more time on the market and sold for reduced prices last year, so it’s actually a great time to BUY. Sellers also had to temper their expectations more than in the past: In the Miami Beach luxury condo market, the difference between asking and closing prices grew to 12.7 percent during the fourth quarter of 2016, up from 7.2 percent the year prior.
Prices are going down for the luxury condo market, and there’s room to negotiate with sellers anxious to sell.
If you’re thinking of downsizing – as a boomer – or if you’re a millennial landing your first big job and you want to stop paying rent – this couldn’t be a better time for you to consider buying a property in the prime real estate location of the Southeast – Miami or Miami Beach.
If you want to explore the area and see what’s within your price points, feel free to call me to arrange a free phone consultation. Call me at 917-882-5243; or e-mail: email@example.com.