What can we expect from the Triangle market in the first quarter of 2017?
Whether or not it’s a buyer’s or seller’s market depends on a couple of things—price range and location. From a global standpoint, most people would consider the Triangle market to be a seller’s market due to significantly low inventory. It’s about 10% lower than this time last year and 25% lower than two years ago. Supply is low, and we still have about 65 people moving into the county per day.
Generally speaking, this low supply and high demand mean prices will rise, but it really depends on area and price. Higher priced homes generally sell a lot slower while lower priced homes such much faster.
Interest rates continue to rise, even after the expected bump we saw after the election. The Fed held off on raising rates, so some of that pent-up desire finally came to fruition. The stock market also went up significantly in the last couple months, leading to an increase in consumer confidence, which also allowed rates to rise. We should expect rates to keep increasing in 2017 from where they’re at now at about 4.25% for a 30-year fixed-rate loan. I wouldn’t be surprised to see that go up to 4.5% by year’s end.
If you’re a home buyer, prices will keep going up, and so will the cost of money. If you plan on buying in the next few year, you won’t benefit at all by waiting.
As a seller in today’s market, now is a great time as well. Everybody wants to buy low and sell high, so you could benefit by selling now while the market is experiencing peak prices. These peaks happen about every seven years in real estate cycles, and the last peak was around 2007. We’re already two years overdue for a market correction.
If you sell you house now, will you have a house to go to in this seller’s market? It all depends on what you’re looking for. It’s a great time to be a move-up buyer, meaning you sell at a lower price point and buy at a higher price point. There is a lot of new construction in our market that started at the end of 2016 that will start to come on the market in the first quarter of 2017.
The homes will be there. You just need to guidance and expertise of a great agent who can help you through the process.
If you have any questions about buying or selling a home or about the Triangle market in general, I’d love to be a resource for you. Give me a call or send me an email and let’s talk soon.