You don’t have to be a fortune-teller to predict the future of the economy; but you do need an acute understanding of the housing market.
As a real estate agent or aspiring realtor, you should stay abreast with the possible changes that lie on the horizon. This means understanding the reciprocal relationship between housing prices and demand.
With 2017 finally coming to a close, the Director of Economic Research at Realtor®.com, Javier Vivas, foresees a major “inflection point in the housing shortage” next year. This gives us significant insight into the future of the real estate market as Kansas, Boston, Detroit, Philadelphia and Nashville prepare for a massive recovery before any other city in the US.
Let’s take a look at a few other real estate trends that are likely to appear in 2018.
Rise in Inventory
Among the five major housing trends to define 2018, Vivas emphasizes strongly on the foreseeable deceleration of inventory declines throughout the year. In particular, he predicts growth in the mid-to-upper-tier price points, and a slow recovery for starter homes.
Millennials to Gain Market Mortgage Share
While price appreciation is likely to slow and interest rates are likely to rise, millennials may very well constitute 43% of the home-buying demographic next year. This means that they will inevitably gain a significant market share, despite the rising price point.
Home Sales Growth in the South
Tulsa, Little Rock, Charlotte and Dallas are some of the major cities in the South most likely to lead home sales growth nationally at a predicted rate of 6%. Much of this will be impacted by the tax reforms which may possibly include tax cuts for renters, as well as loss of tax benefits.
All things considered, this means that finding a home will get substantially easier as the Forecasted National Home Price Growth is expected to reach 3.2% in 2018.
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