Market Analysis

2016 Real Estate Review & 2017 Forecast

2016 was a whirlwind year and with no seasonal slow-down in December! In fact, a new report by the National Association of REALTORS® (NAR) shows existing-home sales in October zoomed to the highest annualized pace in nearly a decade. All major regions saw an increase in sales in November as well.

An improving economy and lowering rates of unemployment promise steady growth, and two major demographic shifts promise to drive sales for years to come - the entry of millennials as first-time homebuyers and the large group of people reaching retirement age. "We are now in the midst of two massive demographic waves that will power above-average demand for homes for at least the next 10 years," says Jonathan Smoke, realtor.com's chief economist.

And while home prices have gone up, existing home prices have risen a moderate 2.1% in the Northeast overall compared to last year (NAR). Placing these numbers in perspective, the increase during the same time in the US overall is 5.6%, with increases of 5.9% in the Midwest, 6.6% in the South, and 8.1% in the West!

Locally, the latest numbers from the Greater Boston Association of Realtors (GBAR) show a 3.1% increase in median sales prices for all properties in Bedford, with sellers receiving 98% of their original list price. So while the trajectory of home prices is certainly rising, it’s at a moderate, steady climb. And the key indicator to watch is the mortgage rates, which are predicted to rise slightly throughout 2017 based on Freddie Mac's projections, with this anticipated increase inspiring continued buyer activity through the winter.

So, there's a place for both buyers and sellers to succeed as we launch into 2017 and I invite you to take advantage of the skill and experience of the Suzanne & Company team to get the best possible results for you and your family to make it a truly happy new year!


 

Election's Impact on Local Real Estate

After a surprising evening and a roller coaster of emotions, some of our clients and friends have reached out to our team with questions about where the market will head after the results of last night’s presidential election.

As real estate professionals, we partner with some of the most knowledgeable lenders and financial advisors in our area, so this morning we contacted some of them to get their take on the current scenario and what the new few months – and years — may look like under Donald Trump’s presidency.

We all know this election was divisive. We witnessed the interactions among friends on social media and in the traditional media outlets as well. With that, a strong market reaction was expected, regardless of its outcome.

Craig Tashijian, Senior Mortgage Consultant with Fairway Mortgage shares:

"As the election results were coming in the stock markets around the world were dropping, and once the final results were in early this morning, the markets began to stabilize. Wall Street likes consistency and stability so the business world can make strategic plans. That said, the business world adapts to the party in power and will make decisions to lead to the growth and profitability of their respective companies.

I see a continued low-interest rate environment and a strong real estate market in 2017 and beyond. We have a strong diverse economy in Massachusetts which will provide good paying jobs to help fuel the real estate market."

And from Andria Dolce, Loan Officer at Radius Financial Group:

"Today we find ourselves dealing with what a Trump presidency means. Understand that the reason for volatility in the market right now is not because Trump won or Clinton lost — it is because it was unexpected. Volatility stems from uncertainty. When we look at the housing market, we have to look at the long term — nothing will happen overnight, so we'll have time to react and plan. It will always be a good idea to buy your dream home, or invest in real estate, so my advice would be to not take one volatile day, week, or month and have that dictate the rest of your future. We will always be able to achieve the American Dream."

What we heard overall is that historically, the election has no negative impact on market performance over the long term and come January, the dust will have settled, Donald Trump’s policies will be in place, and then we'll be able to see the picture in a clearer way.

We encourage everyone to keep in mind that, no matter what your political position, we must look ahead in unity. Real estate isn’t only or always about business. We seek to strengthen our community, to embrace the challenges as a group in our neighborhoods, towns, and workplaces. Let’s continue to work from the ground up to build the villages we love.

Thais Collins and the team at Suzanne & Company

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