SURE Sales Group Ep.4 – 2017 Market Outlook

    2017 Market Outlook: 5 Trends
    HOUSING MARKET NORMALIZATION

    • Normal Market Conditions
    • Buyers have access to inventory
    • Sellers have predictable timeline to sell a home
    • Interest Rates are fairly predictable
    • MSI = Balanced
    • Many markets will have a balanced inventory
    • 4-6% increase in value
    • Smooth sailing with less volatility

    RISING INTEREST LANDSCAPE

    • Its happening.  No more crying WOLF!
    • Rates track closely with 10 year treasury and supply and demand of trading in mortgage securities market.
    • Overnight rate is tied to the Federal Reserve
    • Anticipating .25% a quarter
    • Loosening regulations may shine light on some more exotic mortgage products

    RENT V BUY

    • People will finally overcome analysis paralysis
    • Increasing market values have forced many to rent v buy
    • In many markets rents increased but not as much as home values.
    • Rents are stabilizing
    • 1 – Home pricing is less volatile
    • 2 – Rates are promised to increase but still historically low
    • 3 – Buyers are crunching numbers on what it means to continue to rent,  what they can afford now, and how much their purchasing power will decrease with interest rate increases.
    • These 3 factors are time-bound and have not occurred simultaneously since the 2008 downturn.
    • Predicting a big increase in renters moving to buyers

    MILLENNIALS AND BOOMERS TO PRIME THE ENGINE

    • ⅓ of the workforce is millenials – who will dominate first time buyer category beginning in 2017 and many years to come.
    • 35% of homeowner population are baby boomers
    • Life changing events lead to multi dimensional transactional volume
    • Both of these groups believe in the value of homeownership and the pursuit of the so called american dream’

    WILD CARD TRUMP

    • We have no idea what trump is going to do
    • Likely more positive than negative for the real estate industry
    • Focusing More on the Questions rather than the answers:
    • What will Trumps real estate background, proposed loosening of banking regulations?
    • Trumps 550 Billion in transportation and infrastructure will drive demand in many markets?
    • How will Trump interact with the Federal Reserve given his public dislike of Janet Yellen?
    • Where do Fannie and Freddie fall on his priority list?

     

    Flash back to 2016 Market Outlook – pretty good in hindsight!

     

     

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