What you need to know about real estate for 2017

Wow, what an ‘interesting’ year 2016 has been!  From the Presidential election to the premature loss of many or our favorite musical stars, the year about to pass brought us many surprises. Some news this year wasn’t as much of a surprise, and we’ve tried to keep you up to date with all of the important things you need to know regarding your home and selling or buying real estate.  As we countdown the final days of the year we have some important updates that you’ll need to know for 2017.

As usual, there’s some good news and some bad news.

First, the bad: interest rates have shot up since the election.  From a low of 3.45% on November 7th, the average 30-year fixed mortgage rate increased to over 4% by the end of November.  A lot of people think this is because of the Federal Reserve announcement which raised the rate banks pay to borrow money.  While the Fed Rate may eventually factor into things, it hasn’t in this case.  Mortgage Rates are tied to bond rates, and one thing the financial markets don’t like is uncertainty.  Like him or not, our new President is the definition of uncertainty and that’s causing the bond market to react with higher interest rates on bonds, triggering the higher mortgage rates.

The good news: the election is finally over and the stock market has been surging to record highs.  That might be a vote of confidence for our President-elect and his anticipated business-friendly policies.  It might also be a sign of relief that the election season and the associated uncertainty are done with.

In fact, many people who were waiting on the sideline s while the election was going on are now entering the real estate market. It’s a great time to take advantage of this if you are selling.  Right now In the Lehigh Valley we have 42% less homes for sale than we did one year ago!  At the same time, sales are up 12.4% from a year ago.  So we have an increase in demand and a decrease in supply in our market.  This will result in higher home prices in the coming months!

If you’d like to get an idea of what your home is worth, check out this calculator which takes into account recent Lehigh Valley home sales:

Enter your home address to find what your home is currently worth

And if you’re looking to buy there are two things you should know.

First, even though mortgage rates have gone up, they are still historically very low and worth taking advantage of.

Second, new homes are coming on the market every day.  It’s definitely worth investigating what’s available around the Lehigh Valley right now.

Check here for all available Lehigh Valley homes for sale

As Deb and I reflect on the year, we’d like to thank all of our clients, family and friends that helped to make it the best year ever for The Deb and Joe Corcoran Group. We couldn’t have done it without your help and support.  Our goal for 2017 is to have the opportunity to help even more people with their real estate needs and to be a valuable resource for all of you in 2017.  Give us a call at 484-893-1234.  We’re here to help.