Housing Market Predictions for 2018
Predicting trends in the housing market from year to year can be challenging, even for the experts. This is especially true when there are factors at play like changes in tax laws and changes in leadership, as no one knows quite what those changes will bring. Anything from natural disasters to heated political climates can affect the housing market, and in today’s tumultuous world, it’s harder than ever to predict real estate trends. Still, here are some predictions from experts on what 2018 will bring for homebuyers and sellers.
Since about 2012, supply for homes has been low while demand has been sky-high, and that doesn’t look to be changing this year. According to an article from Forbes, recent data shows that in November 2017 there were 653,347 homes for sale across the country. In November 2010 there were 967,604. This shortage of homes has caused values to soar in many popular markets, leading to bidding wars among would-be buyers. But some experts think that 2018 will bring more inventory than 2017, although not by much. Their reasoning? The current market is unsustainable, as prices are rising much faster than wages, and eventually reluctant sellers, often older people who have been in their homes for years, will be forced into the market. Experts also expect builders, who flocked to rebuild in disaster-ravaged areas after last year’s hurricanes, to start breaking ground in their building markets again.
Millennials Have Entered the Market
Millennials—in this case, classified as those born after 1980—are getting older, and they’re finally settling down. They were slow to enter the housing market, many preferring to rent homes or apartments instead. However, now that many of them are married with children, they’re finally searching for homes of their own. But it isn’t just families who are buying; according to Forbes, single Millennials are buying at faster rates than single people from generations past.
Prices Are Rising...Somewhat
Home prices have skyrocketed over the last few years, and that won’t be changing in 2018. The silver lining, though, is that real estate experts don’t expect prices to rise quite as much this year. Last year, from January through October, average home prices increased by 5.92 percent, according to the Case-Shiller U.S. National Home Price Index, with gains of up to 12.7 percent in popular cities like Seattle. While prices are still expected to rise, they might not be as drastic this year, bringing hopeful buyers a little bit of good news as they calculate their mortgage payments.
If you are looking to sell, buy or invest in real estate and are looking for a team of Realtors in Central Ohio, contact The Rudler Team at 614-895-7400, available seven days a week, to start searching for your dream home! You can also search online through our active listings. Our team can provide you with a wealth of knowledge and expertise to help get you the home you want.
The National Association of Realtors recently announced the latest US real estate figures and the numbers are encouraging for anyone considering selling their home.
Evidently, home price growth accelerated in much of the country during the fourth quarter of 2014.
This is a fantastic development for anyone hoping to get a good price on their home for sale. Continue reading to learn more.
What You Should Know About US Home Sales
Here is an overview of the highlights of the most recent real estate market report:
- The median price of an existing single-family home increased year-over-year in 86 percent of 175 metropolitan areas.
- 24 areas had price gains of 10 percent or more.
- That figure is up from 16 regions during the third quarter.
- Meanwhile, prices declined in 24 areas.
- Experts credit the home price acceleration at least in part to low mortgage rates and improving employment conditions.
- Still, home price gains are reducing affordability in areas across the country, which had 25 percent growth on average over the last three years.
- At the end of the fourth quarter, there were 1.85 million previously-owned homes listed for sale, down from 2.01 million a year earlier.
- The number of markets that saw year-over-year price gains in the fourth quarter has increased.
- The median price for an existing single-family home in the three months through December was $208,700, which is up 6 percent from the fourth quarter of 2013.
A Different Effect Seen in Canada
As US home prices have increased, a lot of Canadian cities are seeing declines in home prices.
According to the market data:
- Home prices have started trending downward in several major Canadian cities, including Montreal, Winnipeg, Calgary and Hamilton, Ont.
- Still, at least two major cities showed gains. On an annual basis, home prices were up 7.4 percent in Toronto and up 5.1 percent in Vancouver.
When It Comes to Real Estate, Knowledge is Power
We take pride in being able to provide you with the most up-to-date market information so that you can make informed decisions as home buyers and sellers.
Check back soon for even more updates on the state of the national housing market and how that may impact you as a buyer or seller.