Highlights & Forecasts…
By Michael Ardolino, Broker-Owner, Realty Connect USA
- As recently noted by Long Island Business News, first-time homebuyers and rising mortgage interest rates are creating a surge in the number of home sales. Inventory remains stubbornly low, creating increased competition among buyers.
- Overall, we still have a mixed bag as we end the year. Sales prices have been slowly recovering and increases are not yet evenly spread across all areas and all price ranges. If the market’s current trajectory continues, 2017 could very well be the year this changes and the last piece of the puzzle fits into place.
- The post-election increase in mortgage rates seems destined to continue, with the Fed’s early December announcement of a rate increase, plus three more that it plans for 2017. Rates are climbing steadily upward and will continue to do so in 2017. The effect on home affordability and monthly mortgage payments cannot be overstated.
- As reported by Newsday, Realtor.com has predicted that the NY Metro area will be one of the hottest 25 markets in 2017. We are expected to place at #23.
Sales activity is likely to begin much earlier in 2017 than in most years. Buyers will try to beat further rate increases, and many current homeowners will want to jump in to our seller’s market. Continuing a trend we noted earlier this year, millennial buyers and Baby Boomer sellers will be leading the charge.
Our next report will provide local year-end stats and further details on our outlook for 2017.