It's been a wild ride in the real estate world through the first half of 2017, and as we roll into the summer months, things are only going to get more interesting.
According to a recent CNBC article, home sales in March were up 9% over the previous year. That article also reported that the number of days the average home is on the market is falling, while the average price of a home sold is rising.
With those three statistics in mind, let's take a look at where we can expect the real estate market to go in the summer of 2017.
So far, 2017 has been the year of low inventory across the entire country. Whether we are talking about new or resale homes, they just aren't sitting on the market for very long. This has created a seller's market in most communities across the country where buyers are being forced to compete for the right to pay higher prices for homes in their neighborhoods.
Because of this low inventory situation, we can assume that any house listed this summer will have a much better chance of selling quickly and for a higher amount than it would have in previous summers. We can also expect that anyone looking to buy a house will have to act fast and will probably be forced to make a full-price offer.
While there is still some talk about mortgage rates going up and slowing down the market by the end of the year, that should not create much of a problem during the summer months. If anything, the threat of rising rates is fueling buyers to act now and get a deal done in order to lock in a lower rate.
Even if the Fed does raise rates slightly during the summer of 2017, it likely won't have too much impact on the market as there will still be the threat of hiking rates again before the end of the year to encourage buyers to act now.
Millennials Starting to Buy
We have wondered for years when the millennials would decide to start buying houses instead of renting them, and it looks like that shift is happening in 2017. We are seeing more and more millennials coming into the market, and that is likely to continue into the summer months this year.
Since the millennials represent such a large buyer pool, their sudden interest in purchasing homes could be strong enough to create even more of a seller's market this summer.
Whether you are looking to buy or sell this summer, having an outstanding real estate agent in your corner is the key to making sure that you make the most out of all of these summer real estate trends in 2017. How can your local Carrington agent help you