Now that we’ve put the election behind us, we can expect the recent step-up in interest rates to be permanent. The 10-year Treasury bond rate jumped from 1.8-percent to 2.1-percent the day after the election, in anticipation that Donald Trump’s policy proposals would cause significantly higher government budget deficits, according to Kiplinger.

Interest rates should rise gradually after December 14 and in 2017, and figure on only one or two Fed rate hikes, because economic growth is likely to be a bit soft.

The average 30-year fixed rate mortgage is expected to edge up to 4.3-percent, with 15-year fixed rates at 3.6-percent.

What does this translate to for the local real estate market? Those of us in the business (and sellers) are hoping the buyers who’ve been sitting on the sidelines will be rattled awake by rising rates and realize that the time to buy is now.

Looming rates, a surplus of inventory (16-percent over last year) and plenty of values on the market make it an opportune time to take the plunge into home ownership. Look for a vibrant spring market to begin early next year; you’re likely to still be wearing your winter coats and galoshes when it opens.

Area Real Estate Highlights

Wilton

  • Median price in October was $915,000. This is up 48.3-percent from $617,000 in October of 2015.
  • Price per square foot in October was $288. This is up from $227 in September and up from $250 in October of 2015.
  • Days on market is up by 45.8-percent.
  • Inventory is up 16.0-percent to 239, but this is still down from a high in February 2016.

Nearby Areas You May Be Interested In

  • Unit sales in Fairfield are down 30.0% to 42.
  • Unit sales in Weston in October were 12. This is up 71.4% from 7 in October of 2015.
  • Unit sales in Westport were 26. This is down 30% from 37 in October of 2015.
  • Unit sales in New Canaan were 7. This is down 65% from 20 in October of 2015.
  • Days on market in Weston is up by 105.5%.

(Headlines are based on comparisons between this month and the same month last year unless otherwise stated.)

All information supplied by William Raveis.

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Lisa Bender is a realtor with the Wilton office of William Raveis and a regular contributor to GOOD Morning Wilton. She writes about the Wilton real estate market. She can be reached at 203.246.6986 or via email.