“Yuge” Changes that could affect the O.C. Real Estate Market… Are you ready for them?
Indeed, uncertainty looms over our economy in a Trump-Administration which intends to make dramatic changes in its’ first year. He isn’t even sworn in, but the anticipation of a Trump administration has already rumbled our equity markets and has made economists’ predictions very polarized.
These 3 questions we are keeping an eye on as we enter 2017 and how they may affect the housing market in the O.C.:
- What policies of the New Administration could affect real estate?
Trump states he wants to grow the economy over 4% (currently 2%), increase jobs and wages, and decrease income taxes for the middle class. He also has addressed eliminating a 50 year old tax program called the AMT (Alternative Minimum Tax) which could save taxes for homeowners with large property tax bills. If implemented and executed these are all good for the economy and the housing market.
- What is happening to Interest Rates?
Interest Rates for the 30-year and 15-year mortgages have already increased 50-60 basis point in the past 5 weeks. If you are locked into a loan at a low interest rate…GREAT! But if rates continue to rise, money becomes much more expensive to borrow. (Note: be sure to review your current loan’s rate and terms and consider refinancing.) Higher rates do not always translate to lower home prices, but it does limit home buyers to afford more house (basically, you get less bang for your buck)
- Millennials…Are there new buyers in the market?
More millennials are expected to buy in 2017 than any other year to date. According to the NAR, in 2016, 17% of home buyers under 35 were able to save enough for a down payment for a home within a year, compared with 14% of all other age groups.
If you are looking to sell, do so NOW!
There is no crystal ball, we can’t look into the future to see what the market is going to do.
The SoCal Market is the hottest it has been in nearly a decade!
SoCal Home values within the last 12 months have gone up 6.9%. Naturally it will slow, with the possibility of a decrease next year.
Many Economists & Realtors agree. Home Values are at their peak! We can get you top dollar.
The best thing you can do for yourself is be ready now, give us a call. Ask us how we can get you more than anybody else can!
Start fixing anything broken, go clean & go green! We have great tips to increase your curb appeal, even within a small budget.
We will leverage our social media and use our combined 30+ years of experience to ensure your home is SOLD! During the best time in the market… NOW!
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