GDP has been promised to increase by 4% but the prediction is 2.1% growth in 2017. Employment should get slightly better moving from 4.9% down to 4.5% which is better but nothing to get excited over. Look for two rate hikes in 2017 with the value of the dollar and questions about the future hikes. Inflation is expected to creep up slightly. Businesses feel confident and if the business friendly proposals pass such as the reduction in the corporate tax rates, it may move the entire economy forward more quickly than expected. the current prediction increase for business spending is 3% to 4% increase which is good news. The GDP for the 3rd quarter of 2016 was around 3.3% which is twice that of the second quarter. If this trend continues there is no reason to expect a decline in the real estate market. The only concern will undoubtedly be the interest rate hikes. Since the Federal Reserve continues to print money, sooner or later inflation will rears its ugly head.
If 2017 falls on the back of the consumer confidence index, expect the economy to take off. Although the underlying base of the economy may be weak, if people are excited about the future and interest rates stay low, expect a good year. If you need help buying or selling a home around Charlotte, contact us at 704-727-6022.