Happy New Year to you and your family and loved ones. I wish you all the best for 2017.. it should be an interesting year!
2017 promises to be an eventful year of transition and change as we have a new administration in our nation’s capital…and a plateful of programs in all areas of our life that will be debated and decided during the next 12 months and beyond.
As I reported in the last SchifferLine (15/12/2016), UCLA’s Anderson Forecast was relatively optimistic about California’s future as it relates to Trump’s policy agenda of creating more jobs, lowering taxes, and pushing infrastructure…and the well-regarded Inman Newsletter feels that housing is going to continue to be in a positive position as developers will welcome less regulation and buyers will still have relatively low interest rates, even with the Fed’s latest quarter-point raise. However, nothing is a sure thing, especially in Washington DC, but for the housing sector, everyone agrees we should continue positive movement — inventories remain low (anemic) and prices keep rising. Affordability is the big issue, especially for millennials.
What does the new Fed rate hike mean to you? Economists don’t foresee major, immediate changes in our financial condition — savings should remain where they are…rates will not jump overnight; CDs will change little, although some banks will offer incentives…credit card interest rates will likely go up (a little) …and the all-important mortgage interest rates will like end up just under 5% by year’s end and another three rate hikes the Fed anticipates enacting by end of 2017. Yes, 2017 will not be dull by any measure. Hang on.
As previously noted, the projection is for continued growth in value and hopefully in inventory in the market as a whole. I expect to see those projections reflected in the new year. Please let me know how I might assist you with any of your real estate needs.