Higher rates are likely to slow the growth in home prices, but that’s a double edged sword. Prices down + interest rates up = still unaffordable for buyers in our area. Plus, sellers will be less willing to sell ‘at a loss’ meaning inventory could well go down. SMR Research Corp, a mortgage research firm, estimates that rising rates will contribute to a decline in price for 1/3 of US homes by the end of 2017.
The big wildcards still out there are GDP growth, inflation, job growth, and consumer confidence. We’ll be keeping an eye on those.
Obviously these are uncertain times, and the market could shift quickly. If you’re thinking of buying or selling in the next two years, please contact us so we can help think through the best strategy and timing for your needs.
We loved having the chance to connect with clients and friends just before the holiday for our annual pie day. Thanks to those who stopped by!
December 3rd, at 10 AM we are hosting a Breakfast Movie Party with Santa at the Tysons AMC Theaters. Join us for breakfast, prizes, and a screening of Disney’s Moana.
As always, if you or someone you know has a real estate need, we’re always here to help.