Experts share 6 predictions for the 2018 housing market including lower home price growth, continued inventory issues, and evolving design trends.
According to the latest report from realtor.com, experts share 6 predictions for the 2018 housing market. First off, they say the current inventory shortage in real estate will ease in the 2018 housing market. That is expected to result in more manageable increases in home prices and a modest acceleration of home sales.
“We are forecasting next year to set the stage for a significant inflection point in the housing shortage,” said Javier Vivas, realtor.com director of economic research. “Inventory increases will be felt in higher-priced segments after home buying season, which limits their impact on total sales for the year. As we head into 2019 and beyond, we expect to see these inventory increases take hold and provide relief for first-time home buyers and drive sales growth.”
Here are the top 6 predictions homebuyers and sellers need to know with regard to the 2018 housing market:
- Inventory shortages will continue to drive the housing market. Experts say low inventory will continue to push up home prices and serve as a barrier for first-time homebuyers struggling to save for a down payment.
- Builders will turn their focus to entry-level homes. Economists say increased residential housing starts, especially at the starter home level, are the key to bringing home prices down.
- Millennials will move to the suburbs. It’s no secret that the majority of millennials would rather live in urban centers with access to a plethora of entertainment and shopping options and robust tech-centered job opportunities.
- Many homeowners will remodel rather than sell. In addition to higher housing starts, experts say more homeowners selling their homes would help alleviate low inventory issues. But experts say that won’t happen. Instead of buying a new home, homeowners will invest in remodeling efforts to make their current homes feel and look brand new.
- Baby boomers and millennials will drive home design. Baby boomers and millennials are driving the housing market, so it’s no surprise that Gudell says they’ll be driving home design trends in 2018, too.
- Homes prices will continue to grow but at a slower pace. Home prices are expected to climb 4.1% in 2018 — 1.1 percentage points higher than the “normal” annual appreciation closer to 3%, but slower than the current annual pace of 6.9%.
I hope this list of 6 predictions for the 2018 housing market helps you make an educated decision when it comes to buying or selling real estate. If you’re interested in specific trends and statistics related to the Montecito or Santa Barbara housing market, be sure to check out my Market Action Reports and Newsletters. If you do decide to move to Montecito, Hope Ranch or any of Santa Barbara’s upscale communities, please call me at 805.886.9378 or email me at Cristal@montecito-estate.com. I’ll happily list your home and find you a new place to live at the same time. I’ve been selling real estate in Santa Barbara for more than 25 years and would be delighted to help you with all your real estate needs.