My Predictions for the 2017 Real Estate Market


My Predictions for the 2017 Real Estate Market
By Scott Rogers • January 4, 2017
As is my annual tradition, I am making some predictions about what we'll see in the Harrisonburg and Rockingham County real estate market in 2017. Overall, I am cautiously optimistic about what the coming year will look like in this area. As shown above, I am predicting 1350 home sales in 2017. Here's why.... I do not think we will see another 16% increase in sales (as we saw in 2016) because I think some portion of the sales surge during 2016 was pent-up buyer demand from 2014/2015 that didn't end up buying until 2016 -- and some of the surge was related to the lowest mortgage interest rates EVER being available to home buyers. I think that higher mortgage interest rates in 2017 will (ever so slightly) limit buyer demand. We have a shortage of inventory in many price ranges, and I believe this will affect how many homes can and will actually sell in 2017. Now, on median sales prices (our best measure of home values).... As shown above, I am predicting a 3% increase in the median sales price to $198,500 during 2017. Here's why.... I believe that the 4% per year increase in median sales price over the past two years was still helping us to catch up from lower sales prices following the real estate boom and bust. I believe that slightly slower growth in the pace of sales will keep the sales price from escalating too quickly. Even in a limited-inventory environment, I don't think that buyers are going to "pay any price" to buy a house. I believe appraisals will keep sales prices in check, with each new sales price needing to be justified and based upon previously sold comparable properties. So -- those are my predictions for 2017. What do YOU think? Feel free to email me (scott@HarrisonburgHousingToday.com) with your thoughts, questions and input. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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