Welcome to 2017, a year of many changes and challenges for everyone in the housing industry.
The first change you will note is that this article has a new author and face. Each year, the members of the Greater Chattanooga Association of Realtors elect a new president to lead the organization; I will be serving as president in 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’re looking for fixed rates under 4 percent, then you most likely 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 are predicting the market can support higher interest rates without damaging the ongoing housing recovery.
A third shifting item to keep in mind is that our local market should continue to be a seller’s market throughout most of 2017. The 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, creating an advantage for home sellers in the short term.
The last major change to watch for in 2017 is the coming of age of Millennials as home buyers. This age group, now 19-35, has overtaken the Baby Boomers as the largest living generation and is predicted to be the largest home purchasing group this year.
As a buying segment, Millennials will increasingly exert their “must haves” on the housing market and their desires will shape the look of real estate for years to come.
We will follow these and many more trends as they evolve throughout the year.
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!
The Greater Chattanooga Association of Realtors is The Voice of Real Estate in Greater Chattanooga.
The Association is a regional organization with more than 1,700 members, and is one of more than 1,400 local boards and associations of Realtors nationwide that comprise the National Association of Realtors.
The Greater Chattanooga Association of Realtors services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade, and Walker counties in northwest Georgia.
Go to www.gcar.net for more information.