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2018?

January 6th, 2018 · No Comments · California, Real Estate News, Santa Barbara Real Estate

Though no one has a crystal ball as to what the future may foretell there are many real estate industry experts that are making predictions as to what the 2018 real estate market might look like. The following predictions have been collected from Housingwire.com and Realtor.com:

Housingwire.com suggests that there will be major shifts moving into 2018, including an ease in the housing inventory shortage. Realtor.com predicts an increase in home prices, and a modest acceleration of home sales. Freddie Mac suggests that, “home sales are expected to increase slightly in 2018 as new home sales take over the market.”

However, most experts are still unsure what the impact will be from the new Tax Reform legislation recently passed will be. 

Here are Realtor.com’s six major predictions for the housing market in 2018.

1.Home price appreciation: Home prices are expected to rise 3.2% next year. This slower rate of increase will allow for home sales to pick up in 2018

2.Mortgage Rates: Mortgage rates are expected to average 4.6% throughout the year, but reach 5% for the 30 year fixed mortgage by the end of the year.

3.Exisiting Home Sales: Existing home sales are forecasted to rise 2.5% as the trend in low inventory begins to reverse course.

4.Housing Starts: Even as existing home sales increase new home sales will increase even more, meaning housing starts will also rise. Overall, housing starts are predicted to rise 3% over the year, but single family home starts will increase 7%.

5.New Home Sales: These will increase at the same rate as housing starts, rising 7% year over year in 2018.

6.Homeownership Rate: The homeownership rate will stabilize at 63.9% after having hit bottom in the second quarter of 2016.

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