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www.HartfordBusiness.com decemBer 26, 2016 • Hartford Business Journal 47 BOOK OF LISTS & ECONOMIC FORECAST 2016-2017 MATERIALS HANDLING SYSTEMS 77 Grassmere Ave., West Hartford, CT 06110 860-523-4205 • www.materialshandlingsys.com CALL FOR A FREE SITE EVALUATION NY • CT • www.cocommunications.com • 860.676.4400 CT's housing market headed toward a 'steady' 2017 By Curtiss Clemens Sr. President and co-owner, Century 21 Clemens & Sons Realty Inc. T here are several issues that will affect Greater Hartford's residential real estate market in 2017. Here is a breakdown of some of them: Mortgage rates: We are already experiencing modest increases in mortgages rates. If rates remain below 5 percent in 2017, unit sales and home values should be minimally impacted. Economy: Nationally, I expect a higher rate of growth in GDP provided that the Trump administration is suc- cessful, early on, in greatly reducing the ever-increasing noose of unnecessary regulations that are in effect and in implementing changes to unfavor- able trade agreements. The key to economic growth is job growth. Connecticut's economy lags behind the national growth rate and will continue to do so because of concerns over the massive deficits in the state budget and the specter of even higher taxes. Dodd-Frank regulations: It appears that there will be modifications of some of these regulations. This action will simplify the mortgage process, espe- cially the closing portion. More importantly, more buyers will be able to qualify for a mortgage without adversely impacting the quality of the mortgages. Millennial buyers: We have been seeing more of this population group entering the homebuying market. This trend will continue. Home values: A combi- nation of the concerns about Connecti- cut's economy, the state budget deficit and marginally higher interest rates will hold increases in home values to 2 per- cent or less. If rates stay around 4.5 per- cent, home values may increase an addi- tional 1.5 percent. There is still a pent-up buyer demand. Foreclosures — The number of foreclo- sures has been falling, both nationally and in Connecticut. That trend will continue. Buyer's market vs seller's mar- ket: We have been experiencing both depending on the town or city and the condition of the home. Homes that have not been updated are taking much lon- ger to sell, whereas, some homes that have been updated and are located in preferred locations are selling above the asking price. Urban areas remain a buyer's market. Rental market: I continue to believe that the number of rental units, including existing and proposed, will result in an oversupply. First, our population is declin- ing in the state. Secondly, many of the Mil- lennials who have been deferring from homeownership and chose to rent are now looking to purchase a home. When all the factors are weighed, I believe that the real estate market will remain steady in 2017. n Curtiss Clemens Sr. ▶ ▶ The key to economic growth is job growth. Connecticut's economy lags behind the national growth rate and will continue to do so because of concerns over the continued massive deficits in the state budget and the specter of even higher taxes.