It’s Spring In Real Estate…
By Michael Ardolino, Broker-Owner, Realty Connect USA
Our local market is healthy and stable here’s the update:
- The Fed has all but promised three interest rate hikes this year, and the first will probably come this month. Some experts predict that rates could reach 4.8% within a year. (See Exhibit 1.)
- As rates increase, purchasing power decreases. (See Exhibit 2, which shows that a $400,000 home at 3.75% costs less than a $360,000 home at 4.75%). Buyers who procrastinate will end up paying more to get less.
- The increases in the number of home sales that we monitored over 2016 are continuing. First-time homebuyers are now in the game, while boomers are ready for condos and adult communities. In between are move-up buyers, and there is pent-up demand at that level. Actually, sales numbers could be wild this season.
- Savvy buyers are out there now, not waiting until spring, and are making sure they are in position to pounce once they find that dream home. There is stiff competition this year.
- Inventory remains an issue. The number of homes on the market is very low, while demand from buyers is high. A key point for potential sellers to note is that homes that are priced right are selling, in a reasonable period of time. This age-old law of real estate holds true in any market, whether up or down, fast or slow. Now is an excellent time to list.
There is no better investment vehicle than real estate for building family wealth over the long term, and the time to act is now. Prices continue to recover, rates are still very favorable historically speaking, and our market is in a good, solid place.
I’m always happy to share helpful real estate information, by publishing educational newsletters, speaking at real estate forums, and arming people with all the data they need to make confident, informed real estate decisions.