It’s just about 2017 and change is in the air! If you’re on the edge of your seat about mortgage rates in 2017, you’re not alone. While nobody can tell the future, I’ve been in the market long enough to read the tea leaves pretty well; so here’s my take on what to expect in Philly real estate in 2017:
Mortgage Rates: 4%-ish and Rising
All signs point to gradually rising interest rates, with a 30-year fixed loan possibly nudging 4.5 to 5% by the end of 2017. Although rates have been lower in recent years, 4%-ish is still quite a low rate for mortgages, historically speaking. Keep in mind, though, that over the next few months and years, this rate is likely to go up, which may make buyers itchy and sellers reluctant to budge.
Still a Seller’s Market
With mortgage rates still at historic lows and inventory rather tight, particularly here in Philly, people who are selling can still expect to get close to their asking price. But prepared buyers can still get good deals if they know what to look for. The economy is growing, earnings are rising and there may be more wiggle room for many buyers this New Year.
Here are some great end of the year stats from TREND:
With the prospect of rising mortgage rates, buyers may skip the usual January-February doldrums and try to find houses before rates start to heat up. The tea leaves indicate the uptick may begin in February and get into full swing by March (about a month early on both ends). So as soon as you’ve cleaned up the New Year’s confetti, give me a call and we’ll go house hunting.
On the flip side, since buyers are going to be out hunting a month earlier than usual, if you’re trying to sell your home, get it spruced up and staged to put on the market in early 2017 so you’ll be ready to show and sell!
I also just want to take a moment to wish you all a fabulous 2017! May you and yours enjoy health and happiness, and may your real estate dreams come true this year! Give me a call, whether you're buying or selling, and let’s get ready to make it your best year yet!