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Emerging Real Estate Trends in 2018


Overall, the housing market outlook for 2018 is positive. Most early forecasters agree that home prices will continue to rise. This is good news for sellers who can unload their home for a profit. Buyers, on the other hand, will face tough competition this year as demand continues to exceed supply during the first half of the year. Whether you’re planning on buying, selling, or investing in real estate this year, here are some trends you need to know.


Home prices will rise, but slowly.

Home prices are expected to rise 3.2% this year. This slower rate of increase will encourage home sales to pick up.(1) According to the Home Buying Institute, this is considered normal growth from a historical standpoint. When looking back 30 years or more, home prices in the United States usually rise by about 3% to 4% annually — despite the occasional bubble or bust. (2)

Boomerang buyers are joining the party.

The National Center for Policy Analysis estimates that as many as 10 million people lost their homes when the housing bubble burst. (3) The waiting period after a foreclosure is seven years, measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.  (4)This year, the effects of the recession will ease for about 1.5 million Americans allowing them to re-enter the housing market. (5)

Existing home sales are expected to grow, while new home sales soar.

Existing home sales are expected to rise 2.5% as the low inventory problem begins to resolve. New home sales will increase even more at a rate of 7% year-over-year in 2018. (6) This is great news for sellers- it’s your market.

More homes will be for sale towards the end of the year.

In 2017 the housing market faced more demand than supply, and that trend continues into this year. As home sales continue to grow, buyers have a tougher time finding a home in their budget that meets all their criteria. By the end of 2018, however, this trend is expected to begin to reverse itself giving home buyers a bigger selection. (7) Waiting to buy though could create its own problems for buyers, as affordability is expected to decline with rising mortgage rates.(8)

While there is some uncertainty in how tax legislation will affect the market, and just how much mortgage rates may increase, all in all it looks to be another strong year for the real estate industry.

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