3 Trends that are Changing the Real Estate Market in 2018
Last year was a good year for home sellers. 2017 saw a shortage of supply and plenty of demand in markets around the country. That meant that homes were flying off the real estate market, and many were selling for over asking price as buyers fought to buy a house before it was no longer on the market.
So while sellers were more than happy, buyers struggled to find a house and make an offer fast enough and high enough to secure the deal.
With the real estate market always changing, here are 3 trends that will help shape the 2018 market.
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Millennials are finally joining the buyer pool
Millennials are the largest generation in the history of the United States, and they are finally reaching a place where they can enter the real estate market. And they are starting to want to.
The generation has reached their 20s and 30s where they are thinking about settling down with a family. They may have racked up a lot of student loans, but those degrees are starting to payoff as they are finding an increase in their incomes, thus making it possible for them to buy.
This generation is projected to take over almost 50 percent of the buyer’s market this year. They are coming into the buyer pool as first time buyers, meaning there will continue to be a good demand in the housing market.
However, millennials should act fast to buy this year because a strong economic climate is expected to lead to an increase in interest rates for mortgages.
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Supply will increase throughout the year
Buyers that have been waiting to see things level out a little should start to see tides turn, if even just a little, this year. While the busiest real estate summer season may still experience a shortage of houses, experts are starting to project that it will even out by fall.
New construction is beginning to pick back up again, which is helping to provide the supply that the market has been desperate for. But there will be no shortage of demand either, so the market should stay strong. The additional supply is anticipated to benefit those with higher budgets first and then trickle down towards those looking for starter homes.
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The southern markets are growing
Cities in the south are anticipated to stay above the 2018 averages in the housing market. Businesses are beginning to move to southern cities like Charlotte, NC, Dallas, TX, and Tulsa, OK. With businesses coming into the cities, they are providing additional jobs and bringing more people to the area.
The real estate market is projected to stay strong in 2018, which is good news. If you are looking to sell, you should consider doing it sooner rather than later before more supply comes on the market and interest rates increase, keeping some buyers away.
If you are looking to buy, the decision is a little harder. Tight supply creates a seller’s market, meaning you could pay more for a house until the supply catches up. But if the interest rates increase by the end of the year as anticipated, you could be better off paying a higher price for the house now than to wait to find one until after the busy real estate season.