The 2017 housing market is shaping up to be opportune for both the buyer and the seller. Although mortgage interest rates are on the rise, it hasn’t deterred buyers from purchasing their next home.
Since the presidential election, interest rates have risen from 3.5 percent to 4.2 percent. According to research by the National Association of Realtors, supply and demand graphs show that even while interest rates have gone up, home sales are still increasing, meaning inventory is going down, which could be a motivating factor for people to sell their homes.
But why are people buying even though rates are going up?
The rising cost of rent has been a contributing factor motivating people to purchase a home. In the past few years, the number of both former renters and first-time buyers stepping into homeownership have increased.
The NAR also predicts that the number of buyers looking to purchase a home in 2017 could grow due to the 2 million+ new jobs forecasted to be created this year. This expansion would lead to a stronger labor market and higher salaries. Research also shows that small business openings have exceeded those closing the past few months.
These are all good signs for the housing market and economy over-all, especially those looking to buy or sell their home.