“What will we see in the housing market this year?” We get asked this question a lot and it seems to be a hot topic on the minds of homebuyers and sellers. Now that the tax bill has passed, the stock market is showing some volatility, and unemployment is low, it’s important to focus on what’s in store for those looking to buy a home in 2018.
Housing experts’ predictions vary for 2018, but here’s a few things we’re keeping our eyes on as the year progresses:
Homes will remain in tight supply, meaning more homes are needed for buyers than what’s available in the current market. Because of this, bidding wars for houses will become more and more common. There’s hope though! By becoming a Churchill Certified Homebuyer you can position yourself almost as if you’re a cash buyer. This gives you a competitive advantage and sets you up to “win” once you find a home you want to buy. With multiple offer situations, becoming certified is essential. Competition for buyers will be fierce!
New construction will see an uptick in sales. This will more than likely be entry-level homes to help facilitate the need of middle-market and starter homes in many areas. It looks as if the suburbs will be able to provide lower land costs and more affordable homes for first-time homebuyers. These new homes still won’t be enough to keep up with population growth and job creation but it will certainly help with low inventory issues across the country.
The 2018 tax reform could impact home sales. Many taxpayers (including renters and first-time homebuyers) may see tax cuts which will allow for them to save more for down payments. But the sales of pricier homes could slow down due to the change in the deduction amounts allowed. Click here to find out how the tax changes could affect you.
Home prices will continue to grow, but at a less rapid pace than in 2017. With so much buyer demand, it’s inevitable that home prices will increase as strong job markets continue to move in and unemployment rates stay low. The decrease of home prices basically boils down to what buyers can afford. The difficulty of affordability in certain areas of the market will cause sales to slow down due to some regions becoming “overvalued.”
Fresh innovations in real estate will continue to evolve. Apps, gadgets, and online tools will continue to launch throughout 2018 to help make buying and selling a home easier. Churchill’s new and improved HomeScout® app gives you access to the home property database that Realtors® use. It’s more up-to-date than other home search tools—even Zillow. It’s a great way to get alerts on new properties in your area and price changes on your favorite homes.
If you’re preparing to enter the housing market in 2018, remember that your local market might vary from what’s being predicted by national trends so always keep in contact with your Churchill Home Loan Specialist about what’s going on in your area.