February 2018 | Market Update 85266 Scottsdale Real Estate Arizona
|February 2018 – Local real estate conditions are changing and your Market Insider provides valuable, up-to-date information about the communities important to you. View critical information about what is happening now, so you can be a “Market Insider”!|
|Market Area: 85266 February 2018|
|Listing Price Trend||+ 0.02% |
|Sold Price Trend||-0.11% ||Just a fraction of what’s happening…|
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|Buying or selling a home involves many factors. Stay on top of current community trends by viewing these listing and sale prices, demographics, school performance, area comparisons, and more. Of course, you can always call or email for help understanding what this information really means for you.|
|Featured “Insider Tip”|
Economic Forecast Hinges on Policy, Tax Reform February 2018
The economy could get a lift from tax reform, with homebuyers and homeowners likely having more income, but less in the way of write-offs, according to Fannie Mae’s Economic and Strategic Research (ESR) Group’s recently released Economic and Housing Outlook for January 2018. Analysts believe housing will again be marked by short supply this year.
“The new tax laws are likely to motivate a mixed response in the housing market: Increased disposable household income should lead to greater housing demand, but changes to deductions essentially reduce the subsidy for homeownership,” says Doug Duncan, chief economist at Fannie Mae. “On balance, we expect the housing market in 2018 to encounter many of the same challenges as last year, including inventory shortages, particularly in the middle and lower-end of the market, and affordability headwinds.”
Analysts anticipate GDP will increase 2.7 percent, as well as a tumbling unemployment rate – if policymakers step up.
“The question for 2018 is less about the impacts of the tax cuts for consumers and corporations than about how the Fed manages the pace of monetary policy normalization amid a stimulative fiscal environment,” Duncan says. “As we see it, the traditional view of a trade-off between employment and inflation lacks solid empirical support in recent decades, and aggressive monetary policy to ward off a potentially overheating economy may do more harm than good. Managing a ‘soft landing’ will be a difficult but critical task for policymakers in 2018.”
Analysts also expect the Federal Reserve to hike the key interest rate, which can affect the cost of a loan, including mortgages, at least twice this year. The Fed raised the rate three times in 2017.
Fannie’s forecast comes on the heels of another outlook released by Freddie Mac, which anticipates a boost in home prices, sales and starts in 2018.
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Jane and Jeff Daley
The article February 2018 Market Update Scottsdale Arizona is brought to you be the Luxury Valley Homes team.
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