As 2016 concludes, interest rates are increasing and inventory is low. If you’re a seller, now might be the best time to list your home if you want top dollar. Want to sell your home? Get a FREE home value report Want to buy a home? Search all homes for sale As we all know, 2016 is ending on a note of general uncertainty. There is a new President-elect and a lot of civil divisiveness out there. It’s natural to wonder what’s going to happen to the real estate market as we enter 2017. Despite the political turmoil, 2016 has been a strong market for our Charlotte region. We’ve seen home prices rise as high as 7% to 8% and days on market drop to 58 in many areas. In some areas, there’s a ton of competition the minute a house goes on the market—even now in December. As we enter 2017, though, the first thing we have to take into account is that interest rates are starting to increase. Buyers out there who are experiencing high demand with a relatively low inventory may have a different buying power next year. Someone who can afford a house at $250,000 today may only be looking at $200,000 if interest rates continue to climb, as most economists predict that they will. In fact, they’re predicted to rise over the 4% barrier next year. Many people are looking at 4% already, which is still low, but when you consider that we were at 3.5% or less at the beginning of the year, it’s a considerable uptick for those still looking for a home. Many economists predict that 2017 will be the start of a market decline.The next thing we have to look at is our relatively low supply of inventory. Right now, more sellers are sitting on their homes for longer than 10 years than at any other point in our country’s history. The typical seller will sit on a home for six to seven years. In response to this, we’re trying to see what we need to do to get sellers more motivated. We’re seeing similar prices now as we did in 2006, which was the height of the previous market cycle and the time period in which many of our current sellers bought their homes. Going into 2017, I am sure that we will see more and more sellers put their houses on the market, as there is a going concern that we will experience another decline. That could be anywhere 12 to 18 months away. So, if you’re a seller thinking about listing your home in the near future, consider now as perhaps your best opportunity to sell quickly and get top dollar for that home. If you have any questions or would like an individual market analysis of your area, please feel free to reach out to me. I look forward to speaking with you!