All-out growth in the housing market this year is hinging on the Trump Administration’s policies, with the Fannie Mae Economic & Strategic Research Group expecting standstill wages to cripple affordability unless incomes improve.
“We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” says Doug Duncan, Fannie Mae chief economist. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”
I believe that this is what will happen here. The lower end of the market is turning over properties more quickly. The middle range may still be okay because by and large these properties are purchased by people from out of town. The upcoming year isn't a simple one and may bring us some good sales, or may stay on the same course as 2016. All I can say is it won't be dull. Kathryn