A lot of people have been asking me what’s going to happen in our market for the rest of 2017. I have my predictions to share with you, as well as some major trends for you to keep an eye on.
First off, I believe we’ll see some price increases before leveling off a bit. We’re not going to maintain that 8% or 9% appreciation rate, but we should see a yearly appreciation of about 5%, which is healthy. One reason for this is because we only have a one-month supply of inventory, which is not healthy.
We’re in a seller’s market, but that doesn’t mean sellers can put their home on the market for any price they want. You can’t get too greedy because appraisers aren’t keeping up with the home sale prices. Buyers still need to make their highest and best offers right away, however. The best homes are going under contract within just a week or two of being listed. Homes that sit on the market longer than that typically need a price reduction.
“The best homes are going under contract within a week.”
Millennials are now starting to buy homes in greater numbers and that trend is likely to continue for the foreseeable future. Utah County is actually the top area in the country for millennials. We have the 2nd-highest level of millennial homeownership in the country.
As far as interest rates are concerned, they’re projected to go up. Even if it’s just by 1%, that will still affect buyers’ purchasing power by 10%. If you’re waiting to buy because you think there is a shift in the market coming, you might be waiting a while. About three years to be exact.
We’re going to have another strong market in 2017 so if you’ve been thinking about making a move, now might be the time to seriously consider it. If you have any questions in the meantime, don’t hesitate to give me a call or send me an email. I would love to hear from you.