Wonder what’s in store for the Carolinas’ real estate market for 2017? No major changes, but that’s a good thing, according to the experts.
In 2016, Allen Tate Company ended the year with 22,194 closed sales units and $5.45 billion in closed sales volume, a respectable increase over 21,565 closed units and $5.16 billion in closed volume in 2015.
That’s a trend Allen Tate President and CEO Pat Riley is comfortable with – the kind of steady growth that helps normalize and sustain the market.
In the January-February edition of Carolinas Market Update, Riley talks about factors that helped define the past two years – and are expected to continue in 2017.
“Low inventory will propel higher than average price appreciation (5-6 percent). Builders will be picking up the pace (but with a higher price tag), and both Millennials and Baby Boomers will still be taking their time buying and downsizing,” said Riley.
What could be different are interest rates. While they saw a modest creep in 2016, a climb of 2 percent off the bottom could be a reality in 2017.
“While a rate increase might nudge some buyers into action, we’re not sure what impact this will have, considering 80 percent of current homeowners have an interest rate under 4 percent,” said Riley.
The Carolinas will remain the benefactors of in-migration, with people moving here for climate, quality of life, great medical facilities and higher education, and family.
Homes in good condition that have been updated and are priced right for the market will sell for the best price and in the shortest amount of time, said Riley.
“I cannot stress enough that dated homes will be passed by, even if buyer interest is high and inventory is low,” said Riley. “That’s true of every market.”