Rich’s 2017 Predictions in Real Estate

2016 has come and gone. The numbers are in. So let’s see how I did. I predicted an increase in sales price of 2-4%. The numbers show an increase in average sales price in Ada County of 5.76% and a median increase of 6.94%. We did better than I anticipated. Still I love that it was not double digit increases. Slow steady growth is good for all. I predicted an interest rate of 4-5%. I nailed that one, atta boy, I do give myself an atta boy when I earn it.

Residential resale led the way in pricing up 6.27% on average,6.81% median sales price increase. New construction prices were flat at -0.06 on the median sales price and -0.38 percent on average. Yes dear readers those were both minus signs. New construction however boomed in number of sales, up 37.99% WOWZA up 38% and residential resale in Ada County was up 8.22%.

So, what do I see for the future? Great question. I see interest rates staying the same 4-5%. If we get too much inflation than it may go higher however I don’t see that happening. If rates go up to 5 and beyond, it is still a great rate and people will continue to buy. The government will try to do some things to help, such as tax credits however most first time buyers will not appreciate the benefits until they file their taxes. So, remember First Time Home Buyers get the cycle going. If they stop all sales will be affected.

I believe average sales price of homes in Ada County will stay steady at 4-6%. Inventory levels will remain on the low side which help drive prices up. Even though prices are going up buyers are remaining patient and adapting their buying power to find a home that meets their budget. They are stretching a little more and are comfortable that they will not be house poor. They want homes in good to great condition. No fixer uppers at this time. All of this will combine to keep prices steady and not runaway.

What do you think will happen? If I had a crystal ball I would be retired and somewhere warmer right now. Happy House Hunting, All the Best Rich

Statistical information provided by Intermountain MLS. http://www.intermountainmls.com/Statistics/Static.aspx

 

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