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Fannie Mae's Economic & Strategic Research Group Forecasts Conservative Growth in Housing for 2017
Despite a strong year-end performance by the stock market and a post-election jump in confidence among consumers and businesses, limited information on the new Administration's potential economic policies led to a conservative 2017 growth projection of 2.0 percent, according to the Fannie Mae Economic & Strategic Research (ESR) Group's January 2017 Economic and Housing Outlook.
Improved consumer spending in the third quarter drove a slight upward revision from the prior forecast; moreover, a friendly labor market and rising household wealth should continue to support consumers. Business fixed investment is expected to pick up - particularly in the equipment space - as the drag from declining oil prices faded and should add to 2017 growth. Additionally, government spending and inventory investment are expected to add to growth this year, while the dollar should continue to weigh heavily on net exports. Mortgage rates are predicted to rise gradually in the coming year, ultimately reaching a fourth quarter average of 4.3 percent. There is a risk that rates could rise faster and higher than forecasted, but the impact on housing could be offset by strengthened income growth.
"Policy changes under the new Administration - in its nature, sequencing, and magnitude - will determine the direction of economic growth in 2017," says Fannie Mae Chief Economist Doug Duncan. "Incoming data suggest improving consumer spending, diminished labor market slack, and advancements in wages, but until we can more clearly read the political tea leaves, it's difficult to say whether this late-cycle expansion will continue into its eighth year."
Spokane Association of REALTORS®
2017 MONTHLY HOME SALES REPORT
SALES UP 11.7%
Closed sales of single-family homes on less than one acre
including condos for March 2017 total 555 compared to March
2016 when the total was 497.
AVERAGE PRICE UP 8.1%
The average closed price for March 2017 was $220,984 compared
to March 2016 when the average price was $204,421.*
MEDIAN PRICE UP 9.3%
The median closed price for March 2017 was $204,900 compared
to March 2016 when the median price was $187,500.*
*NOTE: Does not represent home values.
Inventory is down 27.6% compared to March 2016. Current
inventory, as of this report totals 1,268 properties which
represent a 2.3 months supply.
NOTE: Months supply based on closed sales for March.
DISTRESSED SALES UP
Sales of Distressed homes accounted for 12.3% of sales in
March 2017 compared to 11.7% in March 2016.
NOTE: Information comes from the SAR’s Monthly Activity Report which looks at single family residential/
site built properties on less than one acre and condominiums.
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Adam Salas / Broker
Professional Realty Services