2017 Projections Show Tight Housing Market:
It has already started, the wave of projections for 2017. And as we are seeing more and more start to hit, they have a common theme: 2017 will continue to be a very tight market.
The latest prognosis comes from Money magazine which reported that nationally, home prices are expected to keep rising, albeit more slowly— 3.5% in 2017, vs. 4.5% in 2016, per Moody’s Analytics projections.
In 2016, small homes have seen much sharper price growth than larger ones, and urban areas have appreciated faster than metro outskirts— and both trends are expected to continue in 2017 and brace yourself: Inventory has tumbled among less expensive homes, which means your money may not buy as much as you expect.
If you’re looking to trade up to a larger home, you’re in the housing market’s sweet spot, and the first part of 2017 should be a particularly good time to strike. Over the five years between 2011 and 2016, the average price on a two-bedroom house climbed 59% nationwide, while four-bedroom houses rose a more modest 41%, according to an analysis by Attom Data Solutions. Inventory has also risen at the higher end of the market, climbing almost 8% for homes in the $500,000 to $750,000 range.
But if you’re hoping to cash out and scale back—or if you’re a first-timer looking for a starter home—you face a tight market with low supply and greater competition from rival buyers.
From: Realtor Insider