Around this time of year everyone is making projections and setting goals. Strength in the housing market can be judged on many statistics, however increasing home prices may be the one statistic 2017 shows to be it’s strongest. Below are six reasons this may be true.
- Mortgage rates will rise but not spike. As buyers realize that the cost of the money they need to borrow is increasing , they will put the plans to make their next move into action.
- Improving economy. The US economy is steadily gaining traction and the US Stock market is projecting even better growth for businesses and consumers in 2017.
- Repatriation. The Trump administration to be, has sent strong signals that tax policy and government philosophy will be to build and buy in America. Large multinational companies have over 2 Trillion dollars of corporate profits held overseas due to the tax burden of repatriating these funds. A proposed tax holiday or reform program of some sort looks to be able to bring large portions of this money back into the US to stimulate the economy and job growth.
- Labor shortages may occur in the building sector due to this growth which will increase wages and cost to build new homes, pushing the entire market upward.
- Government deregulation. Businesses will have a new confidence to grow and to build out knowing many regulatory costs will be stable or shrinking.
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Happy Holidays!……and a prosperous 2017 to all!