The daffodils are popping up all around. And so are the real estate for sale signs!
2017 is already off to a strong start, similar to last year.
Here are some of the trends and tendencies that I’m watching:
1. Rising interest rates. Is this the year that we see 6% mortgage rates again? I don’t think so, but the 30 year fixed rates have eased into the low 4% range. Will we ever see the 3% range again? I’m very doubtful about that!
2. Low appraisals. Spring is the main time of year I tend to see low appraisals. The spring market push is on, buyer demand is strong, but the appraisers are using Fall 2016 sales that don’t necessarily reflect current market conditions. We have already had to deal with two low appraisals this year.
3. Growth in new construction. Builder are finally catching up with swelling buyer demand since the recovery took hold a few years ago. I have seen a definite spike in buyer clients signing new construction contracts. One of the cures to the current housing shortage is the growth in new construction options for buyers. It takes builders are few years to find land, obtain approval and develop it for construction. But the builders are catching up!
4. Rising home values. Strong buyer demand, limited supply and a sturdy local economy continue to drive up Central Ohio property values. Most of my sellers this year are doing quite well!
5. Slight uptick in short sales and foreclosures. This is mostly anecdotal, but I seem to be seeing a bump in the number of short sales and foreclosures. Now that we are 5 years out from the heyday of the loan modification boom, some of those home owners are still struggling. Some 5 year ARMS are adjusting. The result is a bump in distressed sellers.
Have a blessed week! Call, email or text me if you have any questions!
David Baker, MBA, SFR, e-PRO