2017 ushers in both a new U.S. president from another political party and one with a lifetime of work in real estate, leaving few believing it will be business as usual. His plans for both deregulation and promised spending on infrastructure, should provide intrigue in 2017. Interest rates were expected to rise in 2016 and they did not, but with the recent bump from the Federal Reserve mortgage rates should increase, but in small jumps that should keep rates below 5%. ( Fannie Mae and Charlotte Regional Realtor Association)
So what does this mean for Charlotte in 2017? After a year where units of closed sales were up 8.4%, where the one year change in price for single family homes was up 7.9%, and for condos and townhomes 8.7% , where Sellers received 96.2 % of their original list price, and where months of supply in Mecklenburg County shrank to 1.5; if January’s activity locally is any indication we are looking at more of the same. Sales are boiling.
Broadly questions remain. How does development impact affordability? 2. Are the millennials going to skip their entry level buy and wait until they start a family or pay off student debt before buying their first home? 3. Will baby boomers continue to make up 1/3 of the market in 2017? Fasten your seat belts!