Thinking About Selling? Don’t Miss The Boat!
While inventory is on the light side and prices continue to rise, I am often asked. “What are the chances home prices will decline as they did during the recession”? My answer…. Almost none.
The likelihood of home price declining across the United States over the next two years is unusually low – only 4 percent, according to the latest Arch MI Risk Index statistical model for Spring 2017.
That 4 percent chance is down, on average, across all states and large cities from 5 percent a year ago and 8 percent two years ago.
Overall, risk was stable this quarter, with minor changes in the riskiest regions that are predominantly coal-, oil- or gas-producing areas. No state had greater than a 50 percent chance of home price declines, suggesting home price growth is likely and will be widely shared.
“The vast majority of housing markets across the nation remain healthy and are projected to stay that way through 2018,” says Dr. Ralph G. DeFranco, global chief economist at mortgage services of Arch Capital Services Inc.
Home prices grew 6 percent and rose in all 50 states. This year, conditions are in place for home prices to grow faster than incomes as a result of a tightening job market, still relatively low interest rates, tight supply and an overall shortage of housing.
I would also mention that as the market has recovered the pace of sales is starting to slow. With 2015 and 2016 being banner years we now have fewer buyers in the market. If you’re considering the possibility of selling your home, now is a great time to jump in. Rates will eventually rise and while this causes the side liners to “get off the fence”, it also can take some buyers out of the market all together if they can’t afford the mortgage.
Food for thought ~ Lisa Ammons