What the Heated Housing Market Means for New Home Buyers
Posted On November 03, 2016
The National Association of Realtors, the Mortgage Bankers Association, and leading lenders Fannie Mae and Freddie Mac report that home sales are going to heat up in 2017.
Existing home sales, previously forecast to reach 5.8 Million in 2017, are now conservatively projected to hit 6 Million. The MBA is going as far as to predict 6.5 Million home sales and Fannie Mae and Freddie Mac weigh in at 6.2 Million.
Rising buyer demand and limited home supply are influencing the surge in the housing market. Unfortunately, “this continued price appreciation is contributing to a growing affordability crisis in many markets around the country,” according to CoreLogic CEO Arnand Nallathambi.
The NAR blog reports that after delaying homeownership, Generation Y-ers are keeping home and condo sales strong. The high demand of the summer housing market caused prices to rise, and this trend is expected to carry on into the fall.
So what does this news mean for potential homebuyers? The short answer is “don’t wait.” As home inventory drops, prices will rise. Fall is typically one of the less competitive seasons for buying a new home. If you are in or near the market for a new home, let me know and we can discuss financing options while mortgage rates are steady.