Real Estate Watch – Centermac SD
Market Predictions for Next Year?
As we approach the end of 2017, it is good to see where we have been and where we are going. At the beginning of the year we saw the average 30-year interest rate start at 4.25% (according to Freddie Mac), and we are currently hovering around 3.94%. So if things hold on, we will see rates finish lower this year, contrary to many people’s prediction that rates would end higher in 2017. As we move in to 2018, I would assume we will hear the same predictions for 2018…however, we are at a point to ask, if rates move up, what will that do to current home values? A new Fed Chair was named this month, and we will expect to see a conservative stance in 2018. Meaning its likely the Fed will slow its rate hikes in order to avoid spurring a recession. With that being said, I would predict that we see rates bounce around the current level in 2018 and may test the January 2017 levels, but I don’t foresee rates going much higher. Many people ask “Is now a good time to buy?” and my answer is still YES! Home prices will continue to move up in 2018 and those waiting will lose out on appreciation each month they wait. There is no way to “time the market,” so if you are buying a home to live in then it still makes plenty of sense to buy! 2018 will still be a good year to buy a home and rates will still be historically low, so don’t miss out on the opportunity in 2018.
Professional Real Estate Consultant
BRE # 02004228
Sr. Loan Officer