In 2017, experts believe a couple of primary factors will affect the real estate market in California and in the rest of the nation. Rising interest rates are expected to affect the affordability of homes, and millennials are getting older and are buying homes.
Interest rates have remained at lows for several years, so they have not had much impact on home-purchasing behavior yet. However, they are expected to rise this year, potentially impacting the affordability of residential real estate. Rising interest rates may influence homeowners to not sell their homes since they would then need to obtain mortgages at higher rates to purchase new homes.
Many millennials are reaching an age where they are wanting to purchase homes. If homeowners decide against selling, there may then be fewer residences on the market, which could drive up prices. Experts believe that first-time homebuyers especially will face stiffer competition since they operate on tighter budgets than those buyers who are looking to move up. According to Zillow, the interest rate for 30-year fixed mortgages is expected to be around 4.75 percent by the end of the year. Home prices and values are expected to continue increasing until the rate hits 5 percent.
People who are in the market for new homes may want to seek out the help of real estate attorneys. A lawyer may help their clients with all of the various aspects of their transactions, including negotiating the contract terms, conducting the title research and completing all of the various duties involved in closing the transactions. Buying a home is typically one of the biggest transactions people will complete in their lives, and doing things correctly is crucial so that they can protect their investments and avoid costly mistakes.