Happy Holidays! Sorry for the delay this month but I wanted to have our Economic Summit with Dr. Stephen Fuller to fill you in on what is coming down the pike for our economy here in Northern Virginia.
This year sales remained strong and higher than last year indicating we are still in an improving market. Prices are stable as we wait for higher paying jobs which happened in the last local jobs report. Higher paying jobs, along with lower inventory will put upward prices on houses in the future. Next year will be even better than this year but it appears as if 2017 will be the best year of the decade so we have that to look forward to in housing. Also, new home starts as well as sales are projected to increase in this same manner which will create even more jobs for our local economy.
Additionally, we see no reason that the Continuing Resolution bill will not pass and be implemented which will lead to the first of 8 interest rate hikes by the Federal Reserve. Both announcements are due the second and third week of December. The mortgage interest rates published today already have this rise in rates priced into them so we are not expecting a spike in mortgage interest rates next week when it is announced. It is projected that by 2018, the Fed rate will be about 3.25% and mortgage interest rates will be around 6%.
Our job market will continue to grow in mostly higher paying jobs but the food and leisure jobs still are the strongest in our economy. Professional Services and Health Care are coming on strong and this is where the higher paying jobs are for us. This trend will continue for the next few years.
All in all, a bright forecast for our real estate market just in time for the holidays! If you would like a copy of the presentation he gave us, please let me know and I will send it to you.
Enjoy this time of year with your friends and family and please be safe! Until next year, Happy Holidays!
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