Real estate experts are releasing their predictions for the 2018 housing market and we’ve come across a few common trends... what do you think? Agree or disagree? Share your thoughts with us!
Millennials will dominate the market
As we’ve mentioned before, millennials are the largest generation of home buyers and in 2018, they’re expected to continue be a driving force in the housing market. According to realtor.com, the number of millennials expected to buy a home will increase from 40 percent in 2017 to 43 percent in 2018.
The South will be a hot spot
Southern cities such as Tulsa, Oklahoma; Little Rock, Arkansas; Charlotte, North Carolina; Durham-Chapel Hill, North Carolina; Dallas-Fort Worth, Texas; Columbia, South Carolina; and Deltona-Daytona Beach, Florida are expected to beat national average in home sales, according to realtor.com’s 2018 National Housing Forecast. It’s a great time to start looking into those cities as potential investment opportunities!
Photo Courtesy of Realtor.com
Inventory increase or to remain a shortage?
There are dissenting opinions on inventory. Some experts believe inventory will see an increase by Q3 2018 after a continued deceleration in the first half of the year, while others believe there will be a continued shortage on inventory causing a rise in prices.
Tax Reform Brings Uncertainty
Until the details of the tax bill have been finalized and adopted, its ultimate impact leaves a lot of uncertainty.
Home prices will grow, but slowly
Home prices in 2017 grew at a fast pace. In 2018, we can expect to see the continued rise of home prices, but at a slower rate. With millennials entering the home buying market and limited inventory of entry-level homes, we will see an increase in those prices, but higher-priced homes, with an influx of inventory and fewer buyers will drive sellers to price competitively.