We recently attended a conference with local and national economists, and we got some great information about the real estate market in 2017. We wanted to share some of the key points that stuck out to us today.
The first thing we talked about was mortgage interest rates. We expect them to rise slightly this year with a strengthening economy. Once they go up, we will see a slight decrease in affordability, although home values will continue to rise.
Another thing to note about the 2017 market is that we will see a lot more millennials in the market. Utah actually leads the nation in the number of millennials. We love millennials and love working with millennials. It will be great to see even more millennials buying homes this year. This will contribute to the overall health of our market.
Scarcity of listings was a big theme in 2016. We expect the supply to improve this year, but don’t expect it to go too high, as demand for homes is still very strong.
Finally, we expect to see a moderate increase in home prices. We won’t see double digit increases, but we will see a nice, healthy appreciation of home values.
There is some uncertainty about the housing market on a national level. Nobody’s quite sure what the Trump administration will do to the Dodd-Frank Act, ditto for Fannie Mae and Freddie Mac. However, we know that Utah is very strong in housing overall and we expect to have another great year in 2017.
Click here for the full 2017 Housing Forecast.
If you have any questions about the market or are looking to buy or sell a home, don’t hesitate to give us a call or send us an email. We would love to hear from you.