Another fat year for real estate? 2017 Predictions
If forecasts are accurate, the median price of a single-family home in Orange County will rise above $775,800 in 2017, exceeding the all-time high set during the housing boom.
“The issue here isn’t the trends. The trends are positive,” said Christopher Thornberg, a former UCLA professor and founding partner of Beacon Economics. “On the other hand, you’ve got this new administration coming in, and we’re not sure (what policies) they’re going to pursue.”
With that in mind, here are six predictions for 2017 from the Orange County Register.
1. Home prices rising - Orange County home prices are projected to rise 2 percent to 6 percent this year.
2. More home sales - Southern California home sales will increase slightly from last year.
3. Builders busier - Construction will increase in Orange County for a seventh straight year, increasing by 3 percent to 13 percent.
4. Mortgage rates up - Interest rates for a fixed, 30-year mortgage will be 1 percentage point or more above the 2016 average of 3.6 percent.
5. Affordability down - By year end, Orange County’s median family income will pay only 60 percent of the amount needed to buy a median-priced home.
6. Smaller rent hikes - Asking rents for an Orange County apartment will increase 2.7 percent to 4 percent this year.