This year has begun with unusually few real estate trend predictions. The Dec 20 Fannie Mae news release perhaps summarizes expectations: “Sentiment measures have improved to multi-year highs heading into next year, but 2017 is expected to deliver another year of pedestrian growth” and “signs of cautious consumers this quarter, …, and heightened uncertainty in the political sphere suggest conservatism in our outlook”. Of course Fannie Mae is looking at nationwide real estate trends. Silicon Valley real estate trends often deviate from nationwide trends.
Until the new U.S. political powers show significant changes in policies, I believe we are likely to see flat home prices after the first quarter of 2017 and a near record low number of sales. Home buyers will probably have fewer choices.