Here at Broadmoor Properties we share the real estate industry’s optimistic outlook for 2017. Our local economy is experiencing impressive growth. Realtor.com ranks Colorado Springs as #11 on its list of top metro areas and predicts the city will see both price gains (5.8 %) and overall sales growth (6.3 %) in the year ahead. Buyers looking for an affordable home will especially benefit. Higher interest rates may mean fewer folks will qualify for a mortgage, resulting in more for-sale inventory.
In addition, the Fed’s decision to raise interest rates signals a stronger national economy — one that has dramatically improved since the housing market was hit hard by the Great Recession. In fact, last month the Mortgage Bankers Association predicted that in spite of an expected half-percent- to-1 percent increase in 30 yr. loan rates, home purchase activity “will be robust, backed by the strength of the job market.”
Granted, the historic low rates of 2015 and 2016 will be missed. Local mortgage company Branch Manager Earl Grant confirms that higher rates will probably create “headwinds” for first-time homebuyers – and may discourage homeowners who delayed refinancing their home loans. “But overall, even if interest rates increase as forecast, we’ll be under 5 percent. That’s still very attractive,” he says. His view is underscored by the National Association of Realtors which predicts the city’s existing home sales will increase 2 percent and home prices will rise by about 4 percent in 2017.
So if you’ve considered the purchase of a primary or vacation home, 2017 is a great time to take action.