4 Predictions of the Real Estate Market in 2018 according to Realtor Magazine, realtor.com®’s 2018 National Housing Forecast, and National Association of Realtors and Realitor.com.
- Inventory will begin to increase in the beginning of 2018. However, the first time home buyer will benefit during this market because the inventory has not been available. With an estimated 2.5% growth in existing home sales, the low inventory begins to reverse itself. Look for up to a 7% increase in new home sales!
- Price appreciation will increase, noting the majority of price appreciation will be in the higher price range “dream homes” of 350k plus. There will be a decline noted to begin in the fall of 2018 for the median of 350k plus but not in entry level homes due to the new inventory available.
- Millennials begin to gain the market
- And so it is true, by the end of 2018, the Millennials may control up to 43% of the housing marketing, up 3% from 2017. The largest unit- within the Millennials is expected to turn 30 by 2020.
- The South begins to lead the country in sales growth, Markets like Tulsa, Okla.; Little Rock, Ark.; Dallas; and Charlotte, N.C., are expected to be the highest performers. Sales in these markets are predicted to increase by 6 percent or more. Nationally, sales growths are predicted to grow by 2.5 percent. “The majority of this growth can be attributed to healthy building levels combating the housing shortage,” realtor.com®
- NAR Statistics: NE=14% MidWest =24% West= 23% South=39%
Recap: 1. Inventory to start increasing. 2. Price appreciation to slow. 3. Millennials to gain market share. 4. The South to lead in sales growth.