Real Estate Watch – Berkshire Hathaway
Is 2017 the Best Year for Housing in Over a Decade?
Freddie Mac feels this way… but why? According to their May 24 outlook article, they speak about the economic growth, unemployment rate, mortgage rates, and home sales being a few of the factors behind their opinion.
GDP growth was only 0.7% for the first quarter which is very low but it looks as though the growth should pick back up averaging around 2.3% for the remainder of this year. In April the unemployment rate was the lowest it has been since 2001 at 4.4%.
Mortgage rates reached 4.3% for a 30-year fixed mortgage in March. This is the highest it has been in a while. The rates have declined since then but are still hovering at 4%. The interest rates are likely to increase back up to the 4.3% by the fourth quarter.
Finally, it was predicted that home sales would suffer a small setback in 2017. That doesn’t seem to be the case. Existing home sales in March were the highest since 2007. New home sales also outperformed expectations. Data from recent sales has now been revised to forecast a slight increase in home sales in 2017.
We feel that with the research and data collected by Freddie Mac this could very well be the best year for housing.
Ranked as the #2 team in the Carlsbad Berkshire Hathaway HomeServices California Properties office, we are your first and only call for all of your real estate needs.
Glenn Holtz & Tanya Gabriella
An independently owned and operated franchisee of BHH Affiliates, LLC.