4 National Housing Market Prognostications from Redfin for 2017

Chicago Agent Magazine recently reported on the parade of predictions for the housing market in 2017, but singled out Redfin Chief Economist Nela Richardson, as the one to listen to.

Ms. Richardson’s four key takeaways include:

1. Home Prices Will Rise

Richardson expects home prices nationwide to rise by 5.3% in 2017 as inventories decline. “The percentage of homes in America’s largest cities that are affordable on the median income has declined the past two years, and will continue to fall in 2017,” according to Redfin. One reason: as interest rates rise, the many homeowners with interest rates under 4% may be less likely to sell and buy a different home with a higher rate.

2. Listing Times Will Decrease

Redfin expects listing time to decrease in 2017, primarily due to technology making it easier for buyers and seller agents to communicate. The average number of days a listing stayed on market was 52 in 2016, the lowest recorded since 2009, according to Redfin. Average listing time was 83 days in 2015.

3. Mortgage Rates Will Increase

No surprise here, as interest rate save spiked somewhat since Donald Trump became President-elect in November. The 30-year FRM rate increased from 3.5% in October 2016 above 4% at year-end. Redfin expects the interest rate to top off at 4.3% during 2017.

4. Increased Loan Limits

While perhaps not impacting investors directly, qualified buyers may expect larger loan amounts. The loan limits for Fannie and Freddie were increased for the first time in almost 10 years, from $417,000 to $424,000 in most of the US, and from $625,500 to $636,150 in expensive markets.

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For more information on why your should consider investing in a professionally managed portfolio of single-family homes, please contact Harold Willig at 917-209-4452 or harold.willig@springviewinvestments.com

Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer, and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 16 years of finance and accounting experience. Mr. Willig also ran a consulting practice and provided valuation, analysis, and transactional support services to multi-billion dollar real estate companies. Previously, Mr. Willig served as the Senior Controller and Vice President of Financial Analysis and then the Chief Financial Officer of the Athena Group, a multifamily development company and fund manager.