Now that 2018 is here, let’s take a look at what we can expect in the housing market. Experts are predicting some positive shifts moving into 2018, including an ease in the housing inventory shortage.
The latest report from realtor.com shows the market will begin to see more manageable increases in home prices and a modest acceleration of home sales. Analysts from the real estate listings website also predict Millennials will begin to increase their market share of homeownership in 2018.
Here’s the 2018 Housing Appreciation Forecast from the experts at the MBS Highway:
Here’s the forecast from the National Association of Realtors:
A few highlights:
Inventory shortages will drive the housing market
Low inventory will continue to push up home prices and potentially be a barrier for first-time homebuyers who struggle to save for a down payment. With that said, many low-down payment programs will help this segment.
Many homeowners will remodel rather than sell
In addition to higher housing starts, some experts are saying more homeowners will sell their homes and partially alleviate low inventory issues.
Some homeowners, despite having high confidence about being in a seller’s market, will continue to stay put. Instead of buying a new home, homeowners will refinance and invest in remodeling efforts to make their current homes feel and look brand new.
Builders will turn their focus to entry-level homes
Economists have said over and over again that increased residential housing starts, especially at the starter home level, are the key to bringing home prices down.
Housing starts have been well below the 50-year average of 1.2 million, but many economists expect builders to finally hearken to the call of first-time and lower- to middle-income buyers yearning for more affordable options.
If you have more questions about getting into that new home in 2018, don’t hesitate to contact me, as it would be my privilege to help!