The real estate industry is an always dynamic, evolving one. If you’re looking for the latest real estate trends 2018, you have bumped into the right post online. We have listed some major trends to affect it this year in the following.
Latest Real Estate Trends 2018
Seattle real estate soars to the top
According to PWC’s latest survey, Seattle, from number four, is now the top-ranked market this year. The state houses some of the country’s tech giants with a well-educated labor force. But that’s not all that make Seattle the top in real estate this year. A few other factors considered are technology readiness, livability, demographics and cost.
The supply is catching up with the demand
After a shortage of homes for sale in the last three years, the economic team of Realtor.com has predicted that the shortfall is now easing up and that will happen in the second half of this year.
The website’s chief economist, Danielle Hale, revealed that the majority of this year should be a challenge for many homebuyers; however, they’re expecting an inventory growth in the fall. She added that there would be plenty of market demands once the inventory turned around.
A few of the markets that might see an inventory recovery first are Nashville, Detroit and Boston. However, those who were looking to buy a starter home might want to be more patient and wait a little longer.
And as the real estate market eases, the prices are predicted to slow 3.2% growth “year over year” nationwide. But then, those higher-priced homes would be appreciating less. And with the slow value appreciation, it means that the home prices will keep increasing as well.
To whoever can figure out the housing shortage, they will get opportunities
According to expert sources, the housing shortage might be a good opportunity to those who are quick enough to understand it. They also revealed that the unicorns of economy might be the middle-priced range and single-family homes – that a wide range of customers can afford.
While no housing market segment is really affordable to many buyers due to economic factors, the experts have zeroed in on the challenging in-demand housing being the most valuable real estate product to develop.
What remain to be potential goldmines for investors are the new type of tract housing, urban row houses, transit-oriented project developments and the mid-market, rental units and starter homes.
Those who can actually figure out the correct balance of land cost, amenities, location and price will find different opportunities than those who couldn’t.
Higher-end market homes remain with good margins, but the affordable homes in urban markets would be very much more welcomed.
For the millions of American millennials, there will be bright spots even if the student loan right there isn’t going to disappear.
The bright side would be the younger generation would be gaining more success at applying and taking out home mortgages at different price ranges– and that includes not just starter homes.
The millennials are motivated to buy a home because they’re settling down and starting their families. In fact, the latest real estate trends 2018 is seeing the growth of homebuyers from the generation, making up 43% that would take out a mortgage in this year’s end. The figure is up from 40% in the last year, according to sources of mortgage originations.
However, experts suggest that these consumers shouldn’t wait too long before buying for reasons. A significant one is the mortgage rate expected to be at 5% by the year’s end because of inflationary pressure, economic growth and monetary policy normalization.
Probably tax reform?
A reform in the tax system is likely to take place – and that will pose a significant turn out of events in real estate.
If a tax reform version would pass with the latest provisions that would affect the industry, the experts predicted seeing fewer home sales along with decreasing home prices.
But what could be affected the most are those in the upper price tiers – particularly those in areas with high taxes, such as the coastal cities.
A soft landing
According to the Urban Land Institute in its annual prediction, there will be a soft landing. While it might sound impossible considering the overall 2017 tumult and news cycle, the prediction is that the future promises a smooth overall ride for the real estate industry.
Where are these latest real estate trends 2018 taking us? No one knows. One thing is certain – the entire industry is in a good position overall, and most of all, consumers and investors looking to buy or sell a home this year might still be able to maximize their investments.
In all cases, don’t hesitate of contacting me should you need help in finding a suitable property in the Ocean City Communities. And for more of the recent updates, news and advice, stay tuned with us here.
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