What’s In Store for the Luxury Real Estate Market in 2017?

What’s In Store for the Luxury Real Estate Market in 2017?

Published by: RISMedia (writen by: Mikkie Mills), February 8, 2017

Eight years after the housing bubble, homebuyers are still exercising caution. This is particularly seen in the luxury real estate market, which ended 2016 on a slow note. A combination of oversupply and rising housing costs in cities like San Francisco and New York left buyers feeling choked out. Will the market improve in 2017? Experts have mixed feelings.

“We have seen inventory come back at a steady pace, and buyer demand is strong enough that it will continue to keep the market moving as we go through the next 12 months,” David Charron wrote for The Washington Post in late December.

But others aren’t so sure. Over-development across the country and around the world has left the luxury housing market “soft,” according to Beckie Strum at Mansion Global. The result is a competition for dollar buyers in the flooded market. However, thanks to the Brexit and other global political upheavals, the dollar is strong compared to other currencies. This means that buyers looking to spend with American money will be able to get even more for their cash.

Rising Mortgage Rates Play a Role!

n addition to the increase in both housing costs and supply, mortgage rates are also rising around the country. The biggest jump occurred right after Trump was elected, reflecting a cautious optimism that his presidency would be good for the economy. In addition, in December 2016, the Federal Reserve raised interest rates by 0.25 percent. This was a signal that the Fed is seeing and trusting positive economic conditions: the 2016 rate hike was the second time in a decade that the Fed decided to raise rates.

In its first meeting of 2017, the Fed indicated it will not raise interest rates again, at least not for the foreseeable future. But that doesn’t mean that the Fed is losing confidence in the economy.

“The labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace,” the Fed stated in a press release.

For the full article… Visit RISMedia.com Blog at: http://blog.rismedia.com/2017/luxury-market-2017/

What’s In Store for the Luxury Real Estate Market in 2017?

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