Happy New Year everyone! What will 2017 mean for the real estate market in Greater Boston? Here’s my predictions:
Hi, it’s Ruth. Happy New Year! Welcome to 2017.
I want to share a few thoughts about my predictions for the housing market in 2017. First of all, I think we’re going to see a bit of a seller’s market throughout the United States, picking up in the Midwest where things have been slow and more of a buyer’s market, and maybe easing up a bit in buyer’s favor but still a seller’s market in the major metro areas like Boston.
Sales, I think we’re going to see about a 10%, 15% uptick in the number of sales in the coming year in the Boston metro area. I think prices are going to go up about 5 to 7%. Prices will continue going up a little bit but not as much as we’ve seen in the past year, past few years.
What else is going we’re going to see in 2017? The mortgage rates. Mortgage rates, it’s pretty much a consensus they’re going to keep going up. We’re going to see them going up but I don’t think they’re going to go up by much more than what we’ve seen since the end of 2016. I do not think they’re going to crack 5%. I think they’re going to stay just around 475 at most. That’s my prediction for mortgage rates.
Luxury real estate. I think we’re going to see a bit of a slow down and a bit of a glut in some of the metro areas for the luxury property market. We’re going to see that in Boston as well. I think that incoming government is going to reflect the ugliness of excess and ostentatious is going to be out. Taste and smaller properties are going to be in. Smaller families and more of a minimalistic taste is becoming more of the trend. Smaller, better quality housing is going to be what buyers are going to want even in a luxury market.
The most interesting development I think we’re going to see in 2017 in the real estate market is I believe subprime lending is going to start making a comeback. I think in general regulations for lending are going to ease up a little bit in the coming months, but the market for the subprime lending, it is time for it to come back. Many of you have a connotation with the word subprime lending from the last recession. I see it a little bit differently. I think there could be a lot of good that comes out of it. You’re welcome to give me a call or email me to argue with that point. I am always happy to hear from you. Have a fantastic New Year. Talk to you soon.