Realtor.com predicts home prices in the Valley will jump to 5.9 percent in 2017 and sales will rise 7.2 percent. In return, that should make Phoenix the #1 housing market next year. The healthy housing market at Sotheby’s Phoenix comes from a steady growth in sales and prices increases, not as many foreclosures, and a tighter new home market.
Higher Interest Rates
The bad news is interest rates are going up and that works against home sales, even at Sotheby’s Phoenix. The website reports 2017 sales will be lower in all areas as a result of climbing interest rates. Regardless, the prediction is that home sales will go up 1.9 percent nationally next year.
Realtor.com is predicting interest rates will climb 4.5 percent next year. Many economists say that’s due to anticipated wage and job growth. Others say the recent jump in rates this past month was the result of election jitters from investors.
Election shouldn't be a factor
The realtor.com economist making this forecast doesn’t think the election will hurt or help the housing market. However, the expert says some potential Sotheby’s Phoenix homebuyers will be bumped out of the market.
Tom Ruff of The Information Market and realtor.com has been right before. “He called the peak for Valley prices in September 2006, and with his friend and fellow housing analyst Mike Orr called the bottom in 2011.”
The 2016 forecast by realtor.com for the housing market was pretty accurate, as well. It predicted areas in Rhode Island and Massachusetts would be at the top.
So, of you’re thinking of buying a Sotheby’s Phoenix home, it looks like 2017 is shaping up to be a good year to do it. Interest rates are still at a historic low. But they are expected to go up more next year so it’s a good idea to move quickly on finding your Sotheby’s Phoenix home.