As 2017 drew to its end, we sat back and reflected on yet another incredibly aggressive year for the real estate market. A market that was very kind to well-priced sellers, and really tough on buyers. Are we headed for a similar year in 2018?
Top economists are predicting some good news for home buyers! In 2017, we saw year-over-year growth of 5.5% which is MASSIVE. That essentially means that a $300,000 home purchased in January of last year is now worth approximately $316,500. That robust appreciation in price boxed a large number of potential homeowners out of the market; the house they could afford 3 months ago is suddenly no longer an option for them. It is predicted that in 2018 we will see a more modest home appreciation rate of 3.2%. While value will still increase, it will not be as drastic a rise as last year’s 5.5%. Finally, we can catch our breath a little!
Expectations are also confident we will see more homes hit the market! For the first time since 2015, year-over-year inventory levels are projected to tick up into positive territory! Homes priced in the mid-to-upper range are expected to be affected first, meaning homes $350,000 and greater. But don’t stress millennials! Inventory will trickle down to the more moderately priced properties as well. One major hurdle holding back the mid-to-lower price range is the high demand for homes for first-time homebuyers. It isn’t that homes are not coming on the market, but rather that in 2017 millennials claimed a whopping 40% of national home purchases – and that number is expected to further increase to 43% in 2018 alone!
Trying to time the housing market is said to be comparable to trying to time the stock market. Neither are systems everyone can easily read. That’s why it’s important to link up with a knowledgeable Realtor when trying to buy or sell a home. Don’t waste time trying to decipher market trends – Call us today!