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Economic Center Blog

March 14, 2017

Improved Real Estate Outlook Suggests Strong Spring Market

Written by FirstAm Editor

We invite you to browse the first quarter 2017 First American Real Estate Sentiment Index, which is based on a quarterly survey of independent title agents and other real estate professionals, providing a unique gauge on the real estate market using the crowd-sourced wisdom and expertise of real estate experts.


“Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate.”


Highlights from the Q1 2017 RESI include:

 

  • Bullish outlook for purchase market, but bearish on refi market:Overall, bullishness about transaction volumes in the coming year increased, largely driven by the rise in purchase transaction expectations,” said Mark Fleming, chief economist at First American. “Overall, post-election confidence in the healthy trajectory of the economy increased purchase transaction expectations, but the likelihood of higher mortgage rates further tempered refinance prospects.”

 

  • Rates not expected to slow demand: “Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring. Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate,” said Fleming.

 

For more information and analysis, including title agent and real estate professional sentiment on price and transaction volume growth by property type nationally and at the state level, please visit the Real Estate Sentiment Index.

 

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Topics: Interest Rates, Real Estate Sentiment Index