It’s the beginning of the new year, the time when housing experts and economists take a stab at predicting the performance of housing markets and home prices this year. You can find dozens of credible predictive articles on major housing websites, and many do agree on some things you can expect.*
- Home prices will rise with faster sales.
Continued inventory shortages will contribute to home prices rising and homes selling faster than ever. 2018 is expected to surpass the 25% of homes selling in peak season in 2017 in less than two weeks.
- Mortgage payments are going up.
Mortgage payments are going to rise due to higher home prices and expected mortgage interest rate increases to between 4.3% and 4.5%.
- No price bubbles are expected.
Even with price increases, buyers and sellers are on the same plane when it comes to prices. 99% to 100% of listed homes are selling. If you’re buying, you’ll be in a competitive arena, but a bubble isn’t in the works as long as there is still a buyer for every listing.
- Millennials will find new haunts.
Millennials want urban amenities, high walk scores and employment nearby. They will flock, especially in higher-priced urban areas on the coasts, to transitional urban neighborhoods where builders are constructing upscale condos.
- Roommate households still rising.
Lack of affordability will continue to influence the decision to include a roommate when purchasing. New business startups and apps that match up potential roommates for group home purchasing are becoming popular.
All considered, 2018 will be an exciting year for the housing market, and nothing in predictions seems to threaten the expectation of rising sales even with rising prices.
Contact us for any questions you may have regarding your personal financial situation in 2018.
While Opes Advisors, a division of Flagstar Bank, Member FDIC, uses all reasonable efforts to ensure that this information is current, accurate and complete on the date of publication, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. Opes Advisors, a division of Flagstar Bank, Member FDIC, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this email.
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