2018 Real Estate Trends Forecast Hot Spring
Where did 2017 go? Unicorn Frappuccinos, Pokemon Go, Obama. These all have come and gone as 2018 ushers in historically low temperatures across the nation and people as far south as Florida hunker down until Spring. For the real estate industry, Spring preparation starts now.
Spring beckons buyers and sellers to venture outdoors, schedule open houses, and embrace a new season, and industry experts are already forecasting a boom. Before you lock yourself indoors for fear of the cold, take some time now to prepare for what Spring has in store for the real estate market.
Realtor.com reports that buyers will enjoy more control in 2018 as the housing supply catches up with buyer demand. This will be a welcomed relief for buyers who might have struggled with higher market prices over the last several years. Bullish construction can be thanked for the inventory surge, although most of the initial growth will be in the mid- to upper-tier price ranges, like $350,000 and up, suggests Danielle Hale, a chief economist at Realtor.com.
On the other hand, many foresee home prices increasing as high as 5%, which can translate into more cash in the seller column on the closing sheet. Still, sellers may need to exercise caution when setting their listing price as mortgage rates are forecasted to climb as well, according to Brandon Cornett from the Home Buying Institute.
Two major groups of buyers expected to impact the real estate industry in 2018 are millennials and boomerang buyers. More than in years past, the purchasing force of millennials will show up in a big way in 2018. In November, 2017, Zillow Group data reported that people aged 18 to 34 have become the largest group of homebuyers in the U.S. Forbes explains one reason for this surge is that more millennials are moving out of their parent’s homes to purchase their own homes. Sellers who are willing to prepare their homes as a millennial choice may find themselves among the top considerations for buyers.
In addition, Market Leader suggests that “boomerang buyers” are poised to return to the real estate market after the 10-million strong foreclosure hit in 2009. Also referred to as buyers-on-the-rebound, this group of potential customers will be four times as more likely to finance with FHA loans than traditional repeat buyers. The average age for the boomerang buyer will be early 50s.
Both buyers and sellers looking to sell in 2018 can begin now to prepare for a Spring real estate boom. Knowing trends like these may make the difference in your 2018 real estate plans.
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