I don’t know about you, but this year is flying by. Our team at Williams & Associates cannot believe it is already the end of May. But this year has been a fastest year for Real Estate in a long time. Anyone looking at a house in the Harrisonburg area in the current market has probably experienced that no sooner then you see it you find out from the Real Estate agent that there is a contract on it. By the end of March housing inventory rose 5.8 percent to 1.83 million homes available for sale. But that is 6.6 percent lower than a year ago, which had 1.96 million. Property days on market in March averaged to 34 days. Which is less than last year which was 47 days. The average price for a home on the market is $236,400. This increased 6.8 percent from last year which was $221,400. So, this year the homes have sold faster than usual but there are fewer homes.
April’s statistics are coming out next week. But what is the market going to look like for the first half of 2017? The National Association of Realtors® presented projections for what they believe it will look like. During the 2017 Realtors® Legislative Meetings & Trade Expo the NAR chief economist, Lawrence Yun presented his 2017 midyear forecast. He was joined by Jonathan Sapder, who is the senior research associate at the Joint Center for Housing Studies at Harvard University, and Mark Calabria, chief economist and assistant to Vice President Mike Pence. To discuss the projection for the first half of the year.
On stage at the expo they didn’t just announce the statistics above but they also talked on how to keep the momentum up for the first half of the year. One of the things that will attribute to a strong first half of the year is economy. Household incomes have become stagnant. If we see an increase in household incomes, then families can grow and move out of the small first time home they bought and upgrade to a larger house, if so, then it is a perfect cycle.
“A strong labor market will drive a strong housing market, but you can't have a strong housing market without a strong economic foundation,” said Calabria. “The recovery has been uneven with roughly 70 counties making up roughly half of all job growth. The White House’s proposed plans to cut corporate and individual tax cuts will help large and small businesses grow, hire and ultimately contribute to more households buying homes as more money goes into their pockets.”
With rising rental costs we should see a higher percentage of homeownership. Spader projected by 2025 the rate of homeownership should be between 61.0 to 65.1 percent. So long story short it is a perfect time to your dream home. Just make sure you are prepared and have talked to a lender. Or give us a call here at Williams & Associates and we can help guide you to your dream home.