We’re going to have a good year. The question is: will it be a great year?
Consumer confidence is through the roof. That means people are feeling good about the economy. They’re feeling good about their own personal finances. And that means that people are going to be moving out of the house they’re currently in, moving into a bigger home, maybe downsizing where they are and buying a vacation home, either in the mountains or on the water. Things are going to… People just feel good right now. Now, part of the reason, as we’ll explain in some of these news clips, that people are feeling good, is that after the election, they see the country going in a very positive direction.
Consumer confidence is at a good place. People feel good about their own finances. People feel good about making a move right now. People feel good about where they stand, better than… better since 2004.
American households are expecting a Donald Trump administration to deliver. Consumers are more upbeat about the prospects of the economy, labor market, and their incomes. It’s a time right now that people are going to be making moves. They’re going to jump into their first house.
The biggest challenge we have going into 2017 is a whole bunch of people that want to buy a home. And not enough homes to sell. It’s crucial… It has been said now for eight months, that if, unless the housing inventory will be fixed, we’re not going to be able to take full advantage of the market we’re in right now.
Prices are continuing to escalate. It means people have more equity. And the equity in their home is something they should be able to do something with.
There’s equity in a house. That equity they could use. They can use that equity to move down to where they currently are living where they might still have family or finishing up the last couple of years of the job and take the additional equity and buy that vacation home that eventually will be their retirement home.
A lot of people did refinance, some to a fifteen-year loan. That means they’re building more equity every single month. And that equity is important for what reason? That means that they will sell their house and make a good financial decision.
They can make the move now that they planned to make in retirement. And now is a better time than waiting until then. If we look at the percentage of homes with positive equity by state, we can see that 93.7% of all the homes in this country with a mortgage on it… Remember one third don’t even have a mortgage on it. We’re talking about the other close to 70%. Ninety-three-point seven percent of that other 70% have positive equity now.
There’s enough equity in your home, that if you ever dreamt about moving. Instead of living around the corner from the water, but moving to the water. Instead of staying in the four-bedroom colonial now that the kids have moved out, you can downsize and use that additional equity, either to put it into the stock market or put it into another piece of real estate that you’re going to use later in your life.
What people believe their house is worth and what they’re getting appraised for are much, much closer now. So, we don’t really have to worry about pricing. People have got the right price. The sellers got the right price in their head. There’s plenty of buyers out there. What we need to watch out for is the number of listings the market needs.
Foot traffic is an indicator of how many houses people actually will go to see. The reason foot traffic is down is not because there’s less people going out. And the challenge is the buyers don’t have any houses to go see in some markets or very few. That’s why that number is down.
SmartAsset.com, just this past month, had an article about housing. And this is what they said, whether you’re preparing to purchase a new home or sell an old house in the new year, it’s important to know how housing trends could affect you. Keeping your finger on the pulse of the market can prevent you from being left out of the cold by rising interest rates or a widening gap between supply and demand.
You need to know! Whether you want to buy or sell, you need to know exactly what’s happening. That’s why we do. You need someone you can trust for up-to-date information, and we are here to help you.