I am often asked what is the housing market perspective 2017? Many of the lending institutions are reporting that the market will experience a decrease in values. This is due to personal income levels that are unlikely to support a significant increase in home values. As you may recall, prior to the collapse of the housing market in recent years consumers were finding it difficult to find affordable housing. The values had risen so significantly that workers with median incomes where not in a financial position to purchase (or maintain) the inflated housing values.
Interestingly enough, some of the major players are predicting several years of slight decline in housing values. However, many of the lending experts are not so bold to predict a decline in values but do predict a very slow and modest increase in values.
Nationwide housing prices have increased between 20-30 percent since 2010-2011. Following this period values were sluggish and are now slightly below their peak in 2007-2008. Overall the unemployment rate is at a much healthier level than in recent years. Of course low unemployment is typically good in relation to property values. The issue is the median pay levels which have not increased along the same levels as the decrease in unemployment.
As in the years preceding the housing collapse, it is unlikely that the income rate will increase at a fast enough rate to coincide and support a major increase in market values. The good news for now, is that all sources appear to expect an increase in property values through the end of 2016. This means if you are contemplating the sale of your property, now may be a great time to move forward. If you are a buyer, you may want to wait until the end of the first quarter of 2017 to begin shopping for your dream home. You may find it more affordable at that time.
