What Should you Expect from the Housing Markets
There will be big changes that will play a role in buying and selling of homes. 2016 has been a good year for real estate with the low inflation and mortgage rates. With Donald Trump, a man known for making billions out of the real estate market, winning the election is predicted that the real estate market will continue to grow.
- Home values
The home values will continue to rise. The real estate market growth might return to its historical normal growth. If Donald Trump can create a clear and stable real estate market and economy in his first six months in office, buyers and sellers sitting on the fence will have enough confidence to jump into the market and continue to drive the values higher.
- New housing starts
According to national association of home builders housing starts have climbed from 784000 in 2012 to a projected level of 1.162 in 2016. The American nation has a shortage of inventory. Soon homebuilders will be able to sell to a higher-price clientele. This is good especially for those individuals that need to sell their existing homes that have gained a positive equity over the years.
- Interest rates
For the first 10 months in 2016 mortgage rates have been ranging from 3.5 to 3.875 percent while the interest rates have fluctuated up and down but it has been 5 years since it went past 5 percent. The rise of mortgage rates last month was as a result of tramps election. Trump promoted an increase in infrastructure. Hence, investors raised the cost of goods which in turn lead to increased mortgage rates. In 2017 mortgages have begun climbing because of the anticipated inflation. This will result in a continued increase of major proportions so buyers should be ready to see the rates at mid-4 percent. Currently the National Association of Realtors projects interest rates will be at 4.4 percent in the fourth quarter of the year.
It is very important to follow on national trends and stories. They have a trickle-down effect, but you have to examine your specific situation and surrounding area to find the best opportunities. The increased equity and home values with historical low mortgage rates will continue to fuel the real estate market throughout 2017. Thus expanding of new homes will start. Thanks to the U.S news on real estate will Americans be ready to see what this year has for them.