2017 Real Estate Market Outlook
I would like to wish everyone a healthy and prosperous New Year! With the holiday season behind us, I am focusing my attention on what may lie ahead of us. The Federal Reserve raised their benchmark for interest rates. Additionally, they signaled that 2017 will see more rate hikes as data on the economy becomes available throughout the year. I do believe that the Fed will pause until after the inauguration so that they can assess the game plan of the incoming administration. The economy is on solid footing and inflation is beginning to rear its head, so the Fed will be extremely vigilant to protect from an overheating economy.

Now let’s move on to discuss the impact this will have on the housing market. While market activity tends to slow down during the holidays, my end of the year was extraordinarily busy. I even had clients wanting to see properties on Christmas Day! As I highlighted in my last post, mortgage rates have begun their upward climb (all of this is tied to the Fed’s rate hikes), and I do believe that the interest I am seeing now is from buyers who want to lock in at current levels. Sub 4% rates are fading in the rearview mirror and the current range is between 4-4.5%. If the Fed proceeds with its outline of multiple increases in 2017, the range will step up to 4.5-5%. Will that increase slow demand in the real estate market? Some pundits I have read believe this will be the case. The ultra high-end of the housing market has seen a significant price correction from the frothy levels of the past few years. Pundits are predicting that this price correction will start to trickle down to all ranges of the housing market. The unknown variable here is inventory. If rates begin to rise, will builders slow down on their construction projects? Will potential sellers stay put? If this ‘perfect storm’ on the inventory front materializes, then offerings will be limited and pricing may not trend down at all.

For me at least, the one factor that has been a constant is interest from foreign buyers. Asian and South Asian clients continue to show increased demand for acquiring properties in New York City. European buyers are still a force as well, albeit not as strong lately. My husband believes this is due to the recent strength of the U.S Dollar in relation to other currencies. A stronger dollar minimizes foreign buying power, which can result in some parties holding off on their U.S real estate search. My impression is that the foreign buyers who stay in the game see the value here and want to take advantage of our strong economic standing. Whatever the rationale, my business has been humming along and I expect it to continue to do so throughout 2017.

If there is a hiccup in the market, it will be even more important to have a trusted agent by your side. My firm is well positioned to help with all of your real estate needs. We have a trusted stable of carefully vetted service providers with whom we partner to streamline the entire process from beginning to end. And I am always at the ready to help you find the home of your dreams!
Maryann Peters
(917) 829-1499
Maryann Peters has been personally buying and selling properties for over 35 years, so the transition into real estate sales was a seamless one. Being on both sides of...
Maryann Peters has been personally buying and selling properties for over 35 years, so the transition into real estate sales was a seamless one. Being on both sides of the transaction, Maryann brings a unique skillset to the table that few agents in the industry can...
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Contact Maryann