Various economist predict a 15% to 30% chance that a recession will hit the present housing market over the course of the next twelve months. A couple of contributing factors for the expected recession may include heightened consumer credit card usage and corporate debt. As a result, the turn of events may inadvertently incur a negative impact on the growth of the housing market in the country.
While statistics show a distinctly higher rate of employment, there are gaping holes that cannot be immediately resolved. The re positioning of mid-skill level workers to high-skill levels may seem advantageous to companies, the polarization translates to a leveling out of growth among urban and suburban areas of business. This unlikely shift carries with it an unforeseen problem for the housing market, since it is far more difficult to build housing; especially entry-level ones, because of the rising costs of land.
The housing market for 2017 is expected to have two more rate hikes for this year, ending at a 30-year fixed-rate mortgage of 4.5%. According to the Federal Open Markets Committee, the year would end with a 30-year fixed rate mortgage or FRM of approximately 4.4% and even predict three more rate hikes before the year ends. At present, the mortgage rate has been kept at a steady and reasonable 4.2%.
Despite these forecasts, the current housing market for 2017 is continuing to flourish. So, for those of you wondering, “how can I sell my house fast?”, don’t worry, it’s still pretty easy. Prices of homes have reached the national peak that was attained in the previous year, which some states have even surpassed. Indeed; on the positive side of things, the housing market is seeing a rise in the costs of homes and land due to the fact that jobs have continually been more centred.
Surprisingly, homes last spring were selling out faster than pancakes, making a leap to almost 9% in the month of March. This is a significant increase from March of the previous year, which saw the market plunge by at least 13 percent. This particular month has reached record heights with homes being sold quickly in shorter periods of time.
Consequently, there have been all-out bidding wars between prospective buyers and houses are being sold above the asking price. It is certainly a crazy year with rapidly-growing real estate markets in all venues across the country; some cities are even seeing a double-digit growth since last year. It is definitely going to be very difficult to purchase a house and lot as prices continue to soar.
The housing market for 2017 is hot and may remain in the same state for as long as businesses and industries continue to polarize employee skill levels and move into sectors of the city that are seeing immense growth in real estate.