2018 Housing Forecast: It's a Great Time to Own a Home
Posted: January 03, 2018 at 12:00 AM by Anna Jotham
Good news looms if you’re looking to sell this year. And if you’re looking to buy, this year may be the time to go for it.
Labor shortages and rising lumber costs will contribute to rising home prices this year, yet experts at Freddie Mac anticipate sales to continue to climb as well. At first glance, these predictions can seem like great news for home sellers and daunting for those in the market to buy. However, the seller’s market is expected to slow a little from 2017. While home prices inflated around 6 percent during 2017, they are predicted to once again increase in 2018, this time by about 5 percent, depending on whom you ask. One consistent prediction: growth will continue, albeit a little more gently than in the past few years.
All signs point to 2018 maintaining a degree of market momentum. The economy remains stable, nothing too crazy is going on in terms of international trade, and mortgage rates are still reasonable. The mortgage rate is generally expected to climb above 5 percent in 2018, which will slow refinancing loans. Insiders generally agree that sooner or later, supply will rise to meet demand, and the market will become much easier for a buyer to navigate. 2018 will show a slight leveling trend toward a more balanced market, and that’s not bad news. A natural ebb and flow of the market is much preferred to the crash after the rocket-fueled rise of the early aughts, and it’s nice to see changes occur in increments instead.
What this means for you: if you hope to sell in 2018, you should have some good opportunities. Keep your head on straight when pricing. Even in a strong market, an overpriced home will sit lonely. Have a plan for navigating offers, especially offers with contingencies, which become more common in ‘move up’ price ranges. If you hope to buy, find a savvy agent to help you navigate the traffic. Make yourself available to look at homes any day of the week. Get all your financial ducks in a row, and you’ll have an edge on the competition.