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Housing Predictions for 2017!

I don't believe that there will be any significant changes to interest rates, at least in the near term, since the underlying fundamentals that have led us into a low-interest-rate environment haven't changed. I think we could see mortgage rates in the 3.5%-4.5% range throughout most of the year. Of course, president-elect Trump has vowed to roll back much of the post-crisis financial regulation in the Dodd-Frank Act. In theory, this could open up banks to lend more freely to wide-range of would be buyers. However, there is some speculation that the new administration would return "government-controlled" mortgage companies Fannie Mae and Freddie Mac back to private control. This would strengthen the real estate sector even further as financial institutions could loosen some of the restrictions making it easier for lenders to obtain a mortgage.

As far as our local markets are concerned, although inventory supplies have increased slightly since September, I believe you will continue to see strong sales for both new construction and resales in single family homes and condo units. Some are predicting a real estate "correction" or "shift." I disagree with this, as long as we continue to see a sustainable inflation, keep interest rates low, along with maintaining low unemployment.

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