Written by The Bucher Group
The New Year is a time for new experiences, opportunities and predictions. Although hard to predict, some experts have started forecasting what you can expect for the 2018 housing market. From home prices increasing at a slower pace to mortgage rates rising, here is a glimpse into what the next year may hold for real estate and mortgage rates – according to realtor.com:
A slower pace in home price growth, 3.2 percent, will allow for home sales to increase in 2018. However, it looks as if even the slower price increase will still leave many homes out of reach for first-time homebuyers.
It looks as if mortgage rates are expected to average 4.6 percent throughout 2018 and reach five percent for a 30-year fixed-rate mortgage by the end of the year. According to the Mortgage Bankers Association, rates will continue to rise – predicted to pass four or even five percent over the next couple of years.
Existing Home Sales
Low inventory will continue into 2018. While this will affect the housing market, experts do forecast a rise in existing home sales – 2.5 percent.
Home sales are expected to increase in 2018. To accommodate the higher demand for housing, we will also see a rise in new home starts – therefore increasing supply. Experts predict a three percent rise in overall housing starts and a seven percent increase in single-family home starts.
New Home Sales
As new home starts increase, so too will new home sales. Expect these to rise at the same rate as new housing starts – seven percent.
After hitting rock bottom in the second quarter of 2016, realtor.com is predicting the homeownership rate will normalize in 2018 – at 63.9 percent.
Are you considering buying or selling in the greater Austin area this next year? Give us a call; we would be honored to help you navigate the real estate market in 2018.