What to Expect in Housing Market in 2018 – Episode One

Today we are going to look forward to the upcoming near future and discuss what national housing trends to expect in 2018 according to most market experts.

Home Price Appreciation Decelerates 
Good news for first-time home buyers: Home-price appreciation is expected to cool down in 2018 after a rapid increase over the last couple of years.  Home prices rose over 6% in 2016 and 2017, according to the Federal Housing Finance Agency.
But for next year, the median forecast among six industry and lender groups is for a 4.1% increase in existing home prices nationwide.

Why the slowdown? One factor is new home construction. Economists expect the construction of single-family houses to rise sharply in 2018, based on building permit applications. The median estimate has single-family housing starts rising about 8% in 2018.

More Homes for Sale Coming Soon 
Home buyers are struggling to find houses for sale. The shortages are especially acute for the kinds of homes that first-time buyers tend to purchase. Among the reasons for the tight supply:
  • Many baby boomers are content to age in their homes instead of downsizing
  • Investors bought millions of homes after the housing bubble burst, and they’re making too much money as landlords to sell
  • Home builders make more profit from expensive houses than entry-level houses, so that’s what they’re constructing

But there’s some hope for 2018, many expert economists predict that the housing supply pinch will begin to ease late in the year.  It looks like we could get to a point where we’re seeing growth in inventory sometime later this Fall.

These are two housing trends expected across the nation in 2018 according to most market experts.  Next month tune in to hear two more housing trends expected.  If you’re a home buyer wanting to take advantage of the increased Spring inventory or a Seller wanting to take advantage of the past recent years home price appreciation give us a call today for a free consultation at 956-307-4544.  We look forward to hearing from you.

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