Following the election we have started to see home mortgage interest rates edge up and all indications are that we will continue to see that in 2017. Steve Gudell chief economist at Zillow has predicted that the 30 year fixed rate will reach 4.75%. Here in Southwest Florida we don’t expect rising interest rates to affect the market a great deal. We have a large number of cash transactions, and a large second/vacation home market where a bump of a half to one percent is not likely to keep buyers from making a purchase.
A second prediction is that the population of Southwest Florida will continue to grow. A recent study by the Urban Land Institute indicated that southern states, where 42% of Americans currently reside are expected to grow to 62% of the population over the next ten years. Florida is expected to continue to see record growth over the next year, as a surge in the number of people retiring is coupled with an increase in the number of affluent immigrants moving to Florida.
While inventory has been an issue over the last several years we are moving towards a balanced market in Southwest Florida. We may see this shift to more of a seller’s market in the year ahead if demand for homes and condominiums increases, as a result of potential business climate and tax structure changes, providing more incentive for people to bring capital back to the United States, increasing jobs and wages which will give people more confidence to move forward with their dream to purchase a vacation or a retirement home for their future.
Southwest Florida has so much to offer, including, fabulous weather, tremendous golf, and boating, sugar sand beaches that are known throughout the world. If you, your friends or family are considering buying or selling a home in 2017 Swanbeck Realty Group would be happy to provide you with one of our buyer or seller guides.