As winter holidays approach we’re turning our attention to the new year, which naturally has us thinking, “What’s to come in real estate?” While we have no crystal ball to predict the market perfectly, we’re sharing our predictions for real estate in 2018.
Housing shortage, more buyers The housing shortage will likely continue into 2018, which makes affordable housing a major focus. Younger generations are looking for practical starter homes. Those who gave up in the hot market this past spring and summer will be back looking for the home they missed out on or couldn’t find in 2017.
Gen Z is going to hit the housing market Trends tend to focus on the millennials, but up next is Generation Z. Those born between 1995-2001 are going to be in the market for housing soon, looking to live in cities and urban areas. Their student debt load could influence what/how/where they buy, so what they can afford remains to be seen. This could present interesting real estate transactions as friends decide to live together, rental property opportunities and more.
Baby Boomer boom This generation is retiring at a massive rate, and with it moving on from family homes to more convenient one-level living and multi-unit buildings.
No slowing of housing sales According to Realtor.com, the National Association of Realtors predicts that existing-home purchases will rise an additional 2.8% in 2018, to 5.8 million.
Interest rates may rise, but will still a great time to buy and sell It’s inevitable that interest rates will eventually rise, but when and how much remains to be seen. However in historic context, interest rates are still low and when you envision staying in a home for years to come, buying will still be a good investment.
If 2018 is the year you’re planning to sell, the spring market is realistically not that far off. We do a ton of consultations in the winter months to help sellers prepare their homes for the best sale. Start your list of projects to tackle this winter and be ahead of the game by getting your house on the market early.