With the end of 2017 being just days away we can't help but to look forward with excitement to what the next year holds for us. And even though we can't say for certain what the future holds, economic experts at Realtor.com have forecasted at least four things we can expect from the real estate market in 2018. Here are, what the site is calling, the four game-changers for the 2018 Real Estate Market:
- Supply is finally going to catch up to demand. Across the nation for the last three years there has been a significant shortage of supply in the real estate market. The economics team at Realtor.com is predicting that by late 2018 the supply of available homes will finally catch up to the demand of homebuyers. A surge in new home building will be factor to thank for the ease on the tight supply chain. Rather than shuffling homeowners around existing homes, new construction will provide the much needed inventory increase. The ease on the supply in the market will also help to slow the growth of home prices.
- Millennial are really going to make an impact on the housing market. Despite most millennial being burdened with heavy student loan debt, more and more are going to be seeking mortgages in 2018. As the oldest members of the millennial group begin to see their incomes increase they will be taking on mortgages for more and more homes, and not just the expected starter ones. Millennial are expected to take up 43% of the home buyers for 2018.
- Southern cities are the hot markets. Cities in the south will outsell all other markets in 2018. The home sales growth in the South will likely beat out the national average next year.
- The tax reform will likely see fewer homes sold and home sale prices decline. The new tax reform passed by the government is expected to cause less homes to be sold and the prices of homes to be lower. The homes in the upper price tiers would likely be effected most.
Information for this article has been found at: https://www.realtor.com/news/trends/housing-trends-2018/