It’s official: We’re all days away from saying hello to 2018!
2017 was a good year for the real estate market. Sure, there were hurdles along the way but all in all, we had a stellar year.
In fact, experts have been weighing in the real estate market for the year to come. Realtor.com recently released their national housing forecast report for 2018. All in all, everything looks positive for the coming year.
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2018 Housing Trends
Realtor’s report listed 2018 housing trends that forecast a good outlook for the coming year. From improvements in housing inventory to price appreciation, the coming year will be a game-changer.
First, Realtor.com sees a significant increase in the housing inventory in the coming year. This will definitely be a good thing since, among the housing trends forecasted, struggling with a low housing supply was one of the most difficult hurdles that the real estate market faced this year.
This development will definitely be beneficial for would-be home buyers who are struggling to find a home that fits and meets their budget. Danielle Hale, senior economist for Realtor.com says that prices are definitely expected to increase but there will more low-priced homes on the market.
Second, millennials will have an increased chance of getting a mortgage. The largest generation in America is seeing increases in their income that they might have a better chance of scoring a home loan.
While their student debt won’t be going away soon, the forecast gives hope to millennials who really want to have a home of their own.
Third, home sales growth are seen in Southern cities than most. Most specifically, among the cities mentioned were Tulsa, Oklahoma, Little Rock, Arkansas, Dallas, and Charlotte, NC.
These cities are predicted to have a 6 percent increase in home sales compared to the national average of 2.5 percent.
Finally, as of writing, experts weigh in on the possible tax system changes that the Republican Party have been proposing. Both the House and the Senate are still debating on whether this will push through or not but if it does, the real estate market will definitely feel its changes.
If the proposed tax reform will be passed, Hale predicts fewer home sales and decreased home prices. High-priced states, like California, is seen to be the ones who will be affected most.
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Key Housing Indicators
Other than the housing trends for the coming years, Realtor.com also illustrated key housing indicators that show the numbers for next year’s housing forecast.
|Housing Indicator||Realtor.com® 2018 Forecast|
|Home price appreciation||3.2% increase, enabling a sales pickup|
|Mortgage rate||Average 4.6% throughout the year and reach 5.0% (30 year fixed) by the end|
|Existing home sales||2.5% growth, low inventory trend starts to reverse|
|Housing starts||3% growth in home starts; 7% growth in single family home starts|
|New home sales||Increase 7%|
|Home ownership rate||Stabilize at 63.9% after bottom in Q2-2016|
A positive housing market for 2018
In the end, the coming year will definitely spring out a string of ups and downs for the real estate market. However, with all these housing trends, experts, lenders, and potential home buyers would definitely have a positive outlook for the coming year.
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