Positive Market Despite Rising Rates
Even though experts in the market agree that rates will likely increase slightly in 2017, they also agree that this will not have a negative impact on the Northwest real estate market.
Lawrence Yun, chief economist for the National Association of Realtors, shared that historically, a rate increase to 4.5% (the expected high point for 2017) would still be a “favorable rate”. “We are getting back toward normalization, so this rate increase should not be viewed as alarming.”
Even at this level, rates will remain historically low.
The robust job market, a healthy economic outlook and the prospect of lower taxes all contribute to buying power remaining strong. In the northwest in particular, both Realtor.com and Zillow note that with vibrant local economies, population growth and housing supply chasing demand, these markets will be very active throughout 2017.
According to Trulia’s 2017 housing outlook report, first time home buyers are most concerned with trying to save for a down payment and establish good credit. Climbing home prices are more concerning than a rise in rates. These prospective buyers are experiencing growing incomes and accelerating economic improvement. This continues to stoke demand. The focus in 2017 will be around supply increasing against this demand and a corresponding easing of rising home prices. According the Brain Koss, executive vice president of Mortgage Network, rising interest rates won’t price most buyers out of the market”.
The market will always change and evolve. In this environment it is important to be able to move quickly when you recognize an opportunity. Veristone is here to help. Give us a call today to discuss how we can help you leverage that opportunity.