The 2016 real estate market was one of the best ever. Record low inventory, a relatively stable local economy and continuing low interest rates all contributed to the hot Columbus real estate market.
Here are some of the key trends I’m watching that all lead me to believe that 2017 will be at least as hot as last year!
1. Rising Interest Rates This is an inevitable, and expected, trend. Rates have been so low for so long that everyone was getting used to 30 year fixed rates at 3.5%. But historic long-term mortgage rates are normally 6-7%. And they are on the move today! Last time I checked, the 30 year rate had jumped to 4.5%. Sources I monitor indicate likely rates in the mid-5% range by late summer.
2. Prolonged Low Inventory and Higher Prices If possible, the housing squeeze will continue throughout this year. If you know anything who wants to sell, tell them now is the time! And with lower inventory comes higher prices. My last two Westerville listings sold for $10k over list price. These are all qualities of a strong seller’s market. Builders are still acquiring and developing land, but that takes time. If you bought a few years ago, you might want to check in with me to see what your home is worth now!
3. Millennials Are Buying — Finally! While sitting on the home buying fence into their late 20’s, many millennials are finally taking the plunge! Overall, they tend to favor walking communities and urban environments. Lots of investors are buying in transition areas and selling to millennials.
4. Relaxing Lending Standards? This is a hopeful trend and the new administration in Washington may help. If regulations continue to relax, look for home mortgage loan qualification standards to easy just a bit. This would open up the market to fresh buyers.
5. New Construction Continues the Comeback The low inventory of resale homes and growing economic optimism is contributing to a coming boom in new home construction. My number of clients building new has jumped this year. Two of my closings in November alone were new builds.
Those are just a few of the trends that I’m watching as we step into 2017.
May God richly bless you this year! And don’t hesitate to call or email me if you have any questions.
David Baker Agent/Broker/Owner Baker Realty Group 614-989-5662