December was one of 3 months in 2016 that we saw a decline in the number of units sold year over year with a -18.19% decrease. The silver lining to that is that the median sales price rose 7.1%. Many people have asked me why the market has slowed in December and there are many factors that came into play – we had a highly volatile Presidential election, the FED raised rates, a reduction in available inventory, and December typically sees a slow down with the holiday season being in full force. This seems like a lot of negative news; however, 2016 was another amazing year in the Real Estate world. We saw a 2.5% increase in the number of units sold in 2016 over 2015, and the median sales price had a 7.92% increase year over year.
Now that we have started a New Year in 2017, I fully expect the market to increase its momentum both in units sold and in median sales price, especially the closer we get to the Spring & Summer selling seasons.
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*Market data includes Collin, Cooke, Denton & Grayson Counties
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- Experience – I am well educated in, and experienced with, the entire sales process.
- Understanding Current Market Conditions – I simply and efficiently explain today’s real estate headlines and what they mean for you.
- Pricing – I help you understand today’s real estate values when setting the price of a listing or an offer to purchase.
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The fed raises rates – Should you Be Worried?
You may have heard that the Federal Reserve raised rates in December; so what does that mean if you’re looking to buy a home in the near future? Many in the housing industry have predicted that the Federal Open Market Committee (FOMC), the policy-making arm of the Federal Reserve, would vote to raise the federal fund’s target rate at their December meeting. For only the second time in a decade, this is exactly what happened.
There were many factors that contributed to the .25 point increase (from 0.50 to 0.75), but many are pointing to the latest jobs report and low unemployment rate (4.6%) as the main reason.
Tim Manni, Mortgage Expert at Nerd Wallet, had this to say:
“Homebuyers shouldn’t be particularly concerned with the Fed move. Even with rates hovering over 4 percent, they’re still historically low. Most market observers are expecting a gradual rise in home loan rates in the near term, anticipating mortgage rates to stay under 5 percent through 2017.”
The bottom line is only time will tell what the long-term impact of the rate hike will be, but in the short term, there should be no reason for alarm.