Properties Magazine February 2017 : Page 28

ACAR CORNER Issues in the real estate industry Six Housing Expectations for 2017 s another strong year for the housing market has come to an end and the calendar has turned over to 2017, it is time to examine the housing outlook and expectations for the new year. Existing-home sales are forecast to muster only a small gain in 2017 because of increasing mortgage rates and shrinking consumer confidence that now is a good time to buy a home, according to new consumer survey findings and a 2017 housing forecast from the National Association of Realtors (NAR). A JIM FOX NAR’s Housing Opportunities and Market Experience (HOME) survey, which asked respondents about their confidence in the U.S. economy and housing expectations for 2017, recently found that 68% of homeown-ers think now is a good time to make a home purchase compared to 82% in December 2015. Even with this dip in buyer enthusi-asm, the market did well and existing sales closed 2016 3.3% higher than 2015 and reached around 5.42 million — the highest since 2006 when sales totaled 6.47 million. In 2017, sales are forecast to grow roughly 2% to around 5.52 million. The national median existing-home price rose to around 5% in 2016 and is expected to rise to about 4% in 2017. By the end of next year, mortgage rates are expected to reach around 4.6%. SUPERIOR INSULATING SAFETY & SECURITY ENERGY CONSERVATION “Existing-home sales are expected to see little expansion in 2017 because of affordability tensions from rising mortgage rates and home prices con-tinuing to outpace income growth,” says Jim Fox, president of the Akron Cleveland Association of Realtors (ACAR). “Ultimately, the market needs to see a growth in for sale inventory, otherwise the nation’s low homeownership rate will struggle to rise in 2017.” Here are a few of the trends and pre-dictions ACAR and NAR expect to see in the new year. 1. Tight inventory conditions Recent data from NAR show that the supply of existing homes for sale is insufficient, and new home construction is not meeting demand. More buyers are competing for a fewer number of homes DECORATIVE ® A Female and Minority Owned Company Authorized Dealer & Applicator 800.295.8468 See the Difference with Sunray 28 Properties | February 2017

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