Some time next month I'll post the numbers for the 2016 local real estate market. It was a solid year by all accounts and I am optimistic about 2017 as well. As a Realtor®, I often find myself encouraging first time home buyers when the market looks like it is making a shift that could impede entry level buyers. It is hard not to come off as a "salesman" trying to "sell" a house but the reality is that entry level buyers with limited resources are the first to be eliminated from the 'dream' when conditions for buyers deteriorate.
What most people consider a great housing market is often not great at all for new buyers to get in. Sure existing homeowners love it that the house they bought 5 years ago is now worth 60% more money, Woo-Hoo! But how many of us have had a 60% increase in wages over that time? Few, my friends, few. The 40k annual salary could buy a nice house in 2012, but today it is 'slim-pickins'.
The latest issue that will effect entry-level home buyers in 2017 is rising interest rates. We already have seen a significant bump up this month, and analysts are pretty much in consensus that the trend for 2017 will continue with a slow rise in mortgage rates. I have mentioned time and time again in this blog that rates are the more deadly virus than rising prices. For renters hoping to grab a slice of the housing pie, your New Year's resolution is clear. It is time to make the move.
Happy New year and warmest wishes for health and prosperity in 2017.