Housing Market Predictions 2018
I am by no means a market expert so don’t you worry, you aren’t getting Kim Shane’s market predictions. However, I will do my best in sharing the information I found in a Forbes article published at the beginning of this month, in terms most can understand!
In 2017 we all learned that things don’t necessarily go the way we think that they will. The person you never thought could be the president, now is. The weather is as unpredictable as ever before. And natural disasters seem to be taking place one after another. The same un-predictableness was true for the housing market, according to this article. It reads, “’we thought there would be some things to take the pressure off,’ reflects Skylar Olsen, senior economist at home search site Zillow. Interest rates would rise. Construction would pick up. Price growth would moderate. ‘That did not happen at any impactful level.’ Instead the market got hotter: inventory tightened, prices rose, mortgage rates barely budged and, though new home construction picked up at the end of the year, it was not at the starter price points where new inventory is needed most.”
With such an unexpected turn of events last year, it seems that most are hesitant to make predictions for what to expect. However, there are a few things that experts are saying we can expect to happen. First, the pace of sales is predicted to slow in the beginning but not for long! According to the article, last year was the best year for wage growth since the recession; this will factor into more people considering and being eligible for obtaining a mortgage. Additionally, renters continue to be unable to find suitable homes to occupy due to low inventory so they will likely consider purchasing a home.
Even though we may see the number of people looking to purchase homes, inventory will continue to be a drag, just like we saw in 2017. While there won’t be a resurgence of new inventory, they are anticipating that it will pick up slightly. However, the main reason for this light optimism is because the current situation is unsustainable… seems full of confidence, huh? The reason it will get better is because the other option is that we will see complete failure. However, we are starting to see new construction shift from building new apartment buildings to single-family homes; which are built to own instead of built to rent.
To read more on predictions from the experts on home market trends like millennial demand will grow, mortgage rates will hover around 4% and price growth will slow down, visit forbes.com using the link below. To find out more on steps to buy a home visit us at www.smcapproved.com