By Mark Hite
President, Greater Chattanooga Association of REALTORS®
Welcome to 2017, a year that promises to hold many changes and challenges for everyone in the housing industry.
The first change you will note is that there is a new face and author of this article. Each year, the members of the Greater Chattanooga Association of REALTORS® elect a new President to lead the organization and I will be serving as President for 2017. I would like to thank Nathan Walldorf for his hard work and leadership of our organization in 2016!
The second change you will notice is that interest rates for 30 year fixed mortgages have been on the rise and all predictions are that this trend will continue. If you are looking for fixed rates under 4% then most likely you need to look in the rear-view mirror, because that time has passed. With the economy growing, unemployment at long term lows and housing prices on the rise, many experts predict that the market can support higher interest rates and not damage the ongoing housing recovery.
A third shifting item to keep in mind in 2017 is that our local market should continue to be a “seller’s market”, throughout most of the year. Inventory of homes available for sale has been declining for the past 24 months, while year over year home sales have increased consistently. This trend has moved home prices up and pushed available inventory down, thus creating an advantage for home sellers in the short term.
The last major change to watch in 2017 is the coming of age of the Millennials, as home buyers. This age group, now 19-35 have passed the Baby Boomers as the largest living generation and they are predicted to be the largest home purchasing group this year. As a buying segment, they will increasingly exert their “must haves” on the housing market as their desires will shape the look of real estate for years to come.
We will follow these trends and many more as they evolve throughout the year and please remember that you cannot replace the knowledge and experience of a local REALTOR® when you are considering buying, selling or investing in real estate!