When you think about it, 2016 was a very interesting year! Perhaps you remember the Summer Olympics in Rio, or a hotly contested presidential election, or maybe the rare championship run by the Chicago Cubs. But regardless, it was quite a year! Now that 2016 is behind us you may be wondering, what’s going to happen to my house value in 2017?
Well no one really knows, but..for the past two years national housing values have increased by 4% or more (source: Case Shiller Home Price Index). Homes which have been too far underwater to sell are now reaching their old values again. And the forecast for this year is once again a 3- 4% increase.
What are the numbers looking like recently? According to the United States Census Bureau, new construction spending is at its highest level in over 10 years. The Federal Reserve Economic Data reported Consumer Sentiment at a 12 year high in December of 2016 and the Bureau of Labor Statistics reported U.S. unemployment touching an 8 year low.
Signs are pointing upward for housing values in 2017, with most estimates projecting 3-4% growth. If your home began 2017 with a value of $300,000, you might expect a value of $309,000 to $312,000 at the end of 2017. Since any number of local factors may play a role in the change of your home’s value over time, it is important to remember that these are national projections.
Personally, I believe that 2017 will be a good year overall for buying and selling homes, and a safe year to pull equity out of your house to add on or build as values are going up. Can values drop in 2017? Of course they can, but given the economic numbers and trend leading into this year, I think its a safer bet that values will increase.
Look for an update in January of 2018 on this blog – I’ll check the same national home values and economic indicators to find out how the year turned out and publish projections for 2018.
Kent Cochrum, Senior Loan Originator
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