The new year is sure off to a chilly start, but it shouldn’t stay that way for long—especially in the real estate market. Indeed, experts all around are saying that the market will heat up throughout the year, and that 2018 is looking to be the year the of buyer. Keep on reading to see what all the experts are saying 2018 will be like for real estate!
First and foremost, let’s give you a brief rundown of the current state of the market. As a whole, low inventory is the main issue in the market right now, which means that there are not enough houses to satisfy the demands of buyers. Short supply leads to higher prices, and it is what we saw at the tail end of 2017.
Well, many of the experts out there are predicting a reversal of both low inventory and steeply increasing prices. One economist for Realtor.com believes that there will likely be an increase in inventory near the 3rd quarter of 2018. In conjunction with this, the rate at which home prices appreciate is predicted to decline. The Federal Housing Administration states that in 2016, home prices rose 6.3%, which slightly declined to 6% in 2017. Yet, these rates are predicted to fall to 4.1% in 2018. Both of these instances—a higher inventory and a lower rate of appreciation—can create the perfect scenario for the buyers, and that is exactly what some experts are predicting right now. As it stands, home sales are predicted to increase by 2.5% in 2018, and the sale of new homes can jump up to 7%!
So, what does this all mean for you? In our opinion, it is looking like the perfect year to finally pull the trigger and buy, especially if you have been split on the decision for quite a while. However, timing is paramount in making sure that you get the best possible deal for your investment. Many believe that the Federal Reserve will be raising the rates 3-4 times this year. Currently, mortgage rates are just around 3.9%, but are predicted by some to raise to 5% by the end of the year. While 1.1% may not seem like a lot, it can mean that difference of approximately $45,000 for a $200,000 loan over the 30-year period. With all of this in mind, the time to act is now, before it is too late.
If you have been on the fence about entering the market, now may be the time. In any case, we invite you to come into our office today and have a chat with us—we would love nothing more than to help!
No matter what the market has in store, here is to a great 2018!