Nationally, home prices are anticipated to keep rising, though more slowly, 3.5% in 2017, vs. 4.5% in 2016. Your position is now going to center on what and where you are buying or selling.
Looking to upgrade a city condo to a large suburban house? Your equity is expected to go far. Since small homes have had a much greater price growth than larger ones, urban areas have appreciated faster than the suburbs. These trends are both predicted to continue well into 2017.
If on the other hand, you are looking to downgrade your suburban sprawl for a city loft, you might have the opposite problem. Inventory is greatly reduced for less expensive homes, and your money may buy less. For 2017 here are some of the best moves.
Growing Families, Time To Move
If you’re looking to upgrade up to a larger home, you’re in a great place. The first half of 2017 will be a particularly great time to make your move. Between 2011 and 2016, the average price on a two-bedroom home increased 59% nationwide, whereas four-bedroom homes rose a more modest 41%. Inventory has also grown for the higher end homes, increasing almost 8% for houses in the $500,000 to $750,000 range.
If you’re wanting to downsize, or are a first-time home buyer, it is a tight market with very low supply and a lot of competition.
Lock In The Lowest Rate
If you are ready to buy, now is the best time to finalize financing, since the record-low mortgage rates seen in 2016 are not expected to last, even mid-way into 2017. Average rates are expected to rise as much as half a percent in 2017. That would mean an $864 increase in annual payments on a $250,000 mortgage, if rates jump to 4.2% from the 3.7% average on 30-year fixed loans in November.
By: Jennifer Sharp