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2017 Market Forecast: Affordability Benefits South, Midwest While Western Growth Slows

By January 12, 2017 No Comments

(NNBW.com) – As some western housing markets continue to fall toward negative territory, Clear Capital’s 2017 market forecast predicts the South and Midwest to rise above the rest of the nation.

National quarterly home price growth remains at 0.9%, while annual price growth has risen slightly to 5.8% — an uptick of 0.2% since last month. As prices across the nation continue to creep upward even in the dead of winter, another key housing industry health metric is also indicating improving market conditions; nationwide, distressed saturation has fallen another 0.3% since just last month, bringing the national average to 12.5% — the lowest level since before the market crash.

While our January 2016 forecast predicted a much more conservative growth year with national home prices increasing around 3%, average price growth during 2016 was far more robust than originally projected, partially due to the stronger than anticipated growth in some key markets in the West and South — particularly Seattle, Portland, Sacramento, and Orlando. For 2017, the country’s housing market landscape still appears to be moderating substantially in the face of additional interest rate increases and possible far-reaching policy changes; national home prices are predicted to increase by 2.4% over the coming year, significantly slower than the observed growth from 2016.

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