A lot of folks have been calling me lately and asking me what’s in store for 2017, so today I’d like to share some of my market predictions for the new year.
First off, Realtor.com just classified the Sacramento area as the fourth-hottest region in the nation for 2017. They’re citing the fact that saturation of home prices in the Bay Area is driving investors away from there and into our neck of the woods. Other factors for this buyer influx include the high price of rentals and past foreclosures being wiped off of many people’s credit histories.
Even though interest rates are high right now, they’re still very low in a historical context. Right now, they’re hovering just above 4%, but they’re expected to increase as high as 5%. Appreciation is expected to be in the 5% to 8% range, but that will depend on where you’re located and what price point you’re in.
First-time home buyers are still having a tough time finding affordable housing, so any inventory below $350,000 should move pretty quickly. That price point will move up as high and fast as the market will bear. We also see that the luxury, high-end inventory above $800,000 has a lot of traction and should attract a lot of activity.
I’m looking forward to helping you move your life forward this year, whether you’re thinking about buying, selling, or investing. We’d love to consult with you and work out a plan that works best for you, so please feel free to reach out to me by phone or email. Talk to you again next time!