2016 was a great year for real estate sales in Southern California and you’re likely wondering … When is the right time to sell your home, buy a home or invest in real estate?
Fortunately, at TBGHomes, we’ve uncovered a MAGIC CRYSTAL BALL that has given us all of the market predictions for 2017 to help you in your decision making process!
And here they are…
PREDICTION #1: Mortgage Rates Continue To Rise!
At the end of 2015, analysts predicted that mortgage rates would rise steadily throughout 2016. They were wrong for the most part — until recently. Mortgage rates have been on a steady rise since the election, topping out around 3.94% for a 30 year fixed rate mortgage. In 2017, rates will continue to RISE.
What that means for you –> HURRY UP!
If you’re a seller, rising interest rates mean lower affordability for buyers and in theory, a decrease in prices. Same deal if you’re a buyer – while a price decrease sounds appealing, rising rates mean you’ll pay more for your loan, so lock in that low interest rate now!
Freddie Mac Mortgage Rates for 2016 – Present
PREDICTION #2: Trump’s Administration Will Boost Home Sales!
Guess what? Even some pundits are coming around to say that Trump’s policies may have a good impact on real estate. We know that only 30% of Californians own a home so the possibilities for new purchases are fairly endless, especially with regard to first time buyers.
Currently, there is very low housing inventory and there are not enough homes on the public market to meet demand. That’s why NOW could be an excellent time to list your home because WE KNOW the buyers are out there! And they’re ready to buy now as mortgage rates continue to rise.
What that means for you –> TBG HOMES IS HERE TO HELP!
If you’re a seller, this is why NOW could be an excellent time to sell your home – WE KNOW the buyers are out there and they’re ready to buy now as mortgage rates continue to rise.
And if you’re a buyer – just because there’s low inventory on the OPEN market doesn’t mean there is LOW inventory. There are many sellers out there ready and willing to sell their homes and your all-star real estate agents at TBG Homes can find them for you! In fact, many of our purchase and sale transactions are done “off the market” for that reason.
PREDICTION #3: Home Price Appreciation Will Cool Slightly
Home prices in L.A. have risen steadily — and significantly — over the last couple of years. But that might begin to change in the months ahead. Recent forecasts for the L.A. housing market suggest that prices could rise more slowly in 2017, compared to 2015 and 2016.
Average Monthly Sales Prices in L.A. for 2016
If you own a home, NOW could be the time to sell while home prices rise at a slower rate, allowing you a better opportunity to make a move up or perhaps even sideways.
What that means for you –> Not Much
The real estate market goes in cycles. We’ve been in an “up” market for quite some time and at TBG Homes, we don’t see that changing in 2017. All in all, the L.A. real estate market is strong. Whether you’re looking to buy, sell, or purchase an investment, you can’t go wrong in L.A.
TBG HOMES is here to help! Whether you’re a first time home buyer, looking to sell your home, or invest in an income property, we have a team of professionals standing by to help you reach your goals.
Contact us TODAY at 310.359.9672!
Thinking of selling your home? Get a FREE and INSTANT valuation of your home at TBGHOMEValues.com!
Looking to purchase a home or investment property? Search the MLS for homes, just like we do!