Throughout 2016, U.S. housing prices continued to rise by about 5% year-over-year, adding to the cumulative gains made since the lows of 2011. Nationally, home prices now stand above the pre-crisis peak, as measured by the S&P CoreLogic Case-Shiller U.S. National Home Price Index. However, the recent trend toward higher interest rates has raised concerns

“The healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months,” NAR Chief Economist Lawrence Yun said.

Higher Rates Lower Affordability

While higher rates have so far had a fairly benign impact on financial markets, they have led to an increase in mortgage rates. Higher mortgage rates can decrease housing affordability, and thus have the potential to lower the demand for home purchases. According to Bankrate.com, the average national rate for a 30-year fixed mortgage was

 Home builders reported a significant boost in confidence after President-elect Donald Trump won the election, according to the National Association of Home Builders/Wells Fargo Housing Market Index, leading some to believe that it could push new home builds up in 2017. 

Existing home sales increased for the 3rd consecutive month in November to the highest pace in almost 10 years according to NAR. Stay tuned for our local real estate year–end report.  

Trumped up

The stock market is rallying and consumer attitudes are peaking on the heels of Donald Trump’s presidential election win. The index of Consumer Sentiment hit 98, and the S&P 500 is up more than 5 percent. More polled consumers mentioned positive impact from new economic policies than ever before. –CNBC

While the end of 2016 is only 2 weeks away San Diego Association of Realtors that during this year the price of homes has risen slightly. Overall the real estate market is performing well despite the limited number of homes for sale. SDAR president, Corey Shepard said, Buyers who are in the market still have