Depending on which economist you listen to, the 2017 real estate market is either heading for another recession, flattening, or steadily rising.
Even though the advice is contradictory, we can use it to be better-armed real estate consumers by looking beyond the conclusions to the indicators being used:
According to some analysts, incomes are not rising at the same pace as real estate prices. Eventually (2017), this will cause downward pressure on prices. The caveat is that if businesses invest more in growth, we could see greater employment and higher wages, which would keep real estate prices pitched upward.
Worldwide, interest rates are predicted to rise, which could bring affordability crashing down. If that happens (in 2017), prices will start to fall. The caveat here is that if interest rates rise incrementally along with rising employment and wages, the rates themselves won’t have a huge impact. House prices would remain stable, possibly growing very slowly.
A glut of people who had been holding back, living at home, waiting for the right moment to buy has now mostly cleared. That means demand may drop off (by 2017), which could bring prices down.
A drop in demand, combined with higher rates and lower wages, could cause home prices to fall. It’s for this combined reason that most 2017 predictions are that the housing market will slow or fall.
As with all predictions, variables can change the outcomes. For instance, local demographics can result in the opposite effect, actually raising values in some area.
If you’re on the fence about buying or selling a home, make sure you contact me so I can help you tread the waters of the current market.