You have begun to look into the new year, you have been planning for 2017, and are ready to make your move in the housing market. But, how is the new year going to be different from the last? What changes should you expect and which ones might come as a surprise? These are questions that need to be asked every year, and from the trends thus far here are a few things you need to keep in mind in 2017.
One thing that 2016 brought us was an increase in real estate prices of about 4.5%. For 2017 the increase is said to continue but at a slower rate that right now is projected to be an increase of 3.5%. The increase is mainly affecting smaller homes as opposed to larger family homes.
Small home upgrade
If you’re looking to increase the family or just get out of your starter home and move on into a roomier home, then things are looking up for your in the new year. Smaller homes (2 bedrooms or less) have seen a market increase of 18% more than larger homes (3 bedrooms and up). If you are ready to upgrade your home, the new year will be kind to you as you might be able to walk away with the most money for a new down payment.
If 2017 is your year to jump into the market with a small home or your first starter home then be prepared for some competition. Low inventory is still expected to continue with small homes, so make sure you are prepared for a tight market and are flexible to your options available.
Don’t be so hesitant to pass up on homes that might need a few repairs now or down the road. A recent survey from Zillow showed that more than of the homes bought in 2016 needed some repair work to be done. With competition in the market, keep in mind that you might have a home with a few repairs. The good news is that homes that needed a few repairs sold at the best market prices.
Time to buy
If you are ready to buy a home, then the time is now. The new year is coming fast, and it is uncertain to say low rates are going to continue to last. In a standard $600,000 home an interest rate increase of half a percent will exceed $2000.