Katie Wethman’s Real Estate News
The election over and everyone around the world is asking “Now what happens?” That’s too big a question for purposes of this little real estate newsletter but here’s what we know so far as it relates to real estate. The markets are still digesting their ‘best guesses’, but so far the 10 year bond market has spiked, and most mortgage pricing is tied to that (not the 30 year, as some might assume). This means higher interest rates for now. It is too soon to tell if it’s the start of a trend, or a blip. We’ve known for some time that rates couldn’t stay that low forever though, so my money is on ‘trend.’
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.
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