Happy New Year! Our hope is that you are beginning 2017 with much to look forward to – especially in the areas of health, happiness and of course…housing! Given the recent rise of the Fed key interest rate, as well as the uncertainty that typically accompanies new nationwide leadership and continued rising home prices – you might wonder if there really is much to look forward to in real estate this year. The good news is that ‘optimism’ appears to define the vast majority of recently polled respondents, and our local economic and job gains particularly propel the momentum that has already begun. In this week’s market update, I wanted to share some facts and data from the Inman News Special Report: 2017 Real Estate Industry Outlook, as well as their best advice for thriving within it.
First things first – let’s address that optimism! Did you know that nearly 1/3 of recently surveyed citizens cited being ‘extremely optimistic’ about the housing market in 2017? Are you surprised to hear that over half of respondents expect the new political administration to have a positive effect on the housing market? Have you heard that nearly 50% of those surveyed expect home sales to rise? These are just a few of the figures that reveal a generally cohesive certainty and hopeful anticipation that await homeowners this year.
While consumer optimism is present and founded, it’s also no secret that the rise of rates has begun, and the impact to affordability is a concern to many. However, these slow, imminent and gradual rate increases might just be the trigger to get sellers moving and open inventory levels. Strong home sales figures in the last quarter of 2016 demonstrated that buyers are serious even in the traditionally-considered ‘slow season’, and that demand is here to stay.
One theme in the Inman article stood out to me in particular; it’s a theme that I think truly captures the outcomes we have yet to see but definitely expect as one respondent stated: “What most people think they know about real estate will have to be re-educated…low interest rates will no longer be the driving reason for home purchase, building personal wealth and stability will [be]”. For the first time in a nearly a decade, the alternative drivers of home price gains, consistent employment gains, economic stability, business growth and rising salaries will rival rate considerations in real estate decisions.
With much to look forward to but much also unknown (i.e. the foreign response to our new administration, the potential for domestic changes in deregulation, the bank response to the Fed key interest rates), there are likely to be many windows of opportunity amidst times of uncertainty. The three pieces of advice I gleamed from the Inman piece ring true in nearly any market – but are especially important in this one: stay educated, remain nimble and be calm. There is no better time to book mark some highly-respected news sources, put your mortgage planner, real estate agent, financial advisor and tax pro on speed dial – and try your best to keep your emotions out of the game. When opportunity knocks, the door that opens might be within the timing you least expect, but in a position that could benefit you the most. With an open mind and a malleable strategy, your steadfast real estate goals have every likelihood of success.
Read the Inman Special Report in full HERE.
Cheers to making it happen in 2017,
Bobbi Decker, SRES, CIPS
VP Business Development & Broker Associate, Today Sotheby’s International Realty
Bobbi Decker & Associates
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/