A Real Estate Outlook for the New Year
As the year comes to a close, it’s traditionally a time to reflect on the past 12 months and begin to plan for the next 12. With new goals, fresh outlooks and a new year on the horizon it’s time to start thinking about what 2018 will bring. For some it may mean a new job, traveling to a new place or starting a family. For others, it may mean moving to a new home. If you fall into the potential home buyer category, then you’ll want to know what to prepare for as we enter into this new year. Let’s take a look at the direction the real estate market is heading based on some recent industry analysts.
2017 was a year of major growth for the housing market. It was a year of growing home prices across the country and solidified the recovery of the industry as a whole. 2018 is shaping up to be a close reflection of this past year, which means things are looking pretty good. So good, in fact, that analysts are expecting even higher home prices in the coming year than originally projected. However, home prices in 2018 are predicted to increase at a lesser pace than 2017.
The reason for the continuation of this seller’s market comes down to one thing: inventory. But more specifically, the lack thereof. Low inventory and high demand has been the continual cycle of 2017 and this demand has yet to dwindle. The American labor market is stronger than it’s been in decades, leading Americans to feel increasingly confident enough to buy homes. However, new-home construction and property listings aren’t keeping pace with consumer demand.
With new home-building stagnating, demand will continue to grow in the new year and though supply should increase somewhat, there still won’t be enough new homes to meet this demand, which will continually contribute to higher prices. But analysts foresee that despite this inventory challenge, homeownership rates will continue to rise. Annual home value appreciation is predicted to grow anywhere from 1-5 percent as well.
Analysts are also predicting that despite the low inventory and increased prices that the number of millennial buyers and international investors will also increase in 2018. Mortgage rates are also expected to grow, averaging 4.6 percent and possibly reaching 5 percent by year-end. Overall, the forecast for the coming year is optimistic and it’s shaping up to be a good year for homeowners looking to sell. For more information on 2018 housing market predictions, click here.
Selling your Home in 2018
If you’re thinking about selling your home in Orange County in 2018, don’t wait until spring to list your home. Properties listed at market value throughout Orange County are moving fast. Having an experienced local real estate agent on your side can help you sell your home for the best price. With more than 240 million sold locally, I can help you too. Call me today at 949-285-3215 to list your home and have a Happy New Year!