Each December, mortgage industry experts take the time to reflect on the year’s housing market in order to forecast what we can expect throughout the new year. Whether you’re looking to buy or sell in 2018, experts predict that knowledge and timing will be key to setting yourself apart from the competition. Here are the 2018 housing market predictions to note.
- Home sales will continue to increase: According to realtor.com’s latest report, home sales will continue to increase by 2.5 percent throughout 2018. In fact, a recent survey conducted by Trulia showed that 31 percent of respondents expect 2018 to be an even better year to sell. Many experts believe this is due to a slow in home price increases.
- Housing starts will pick up pace: One of the biggest problems for home buyers throughout 2017 was a significant lack of home starts - but this is not expected to continue throughout the upcoming year. Instead, home buyers may see a three percent increase in housing starts overall, with a 7 percent increase in single-family starts.
- The homeownership rate will slightly increase: Only two years after hitting a record low in homeownership rate, industry experts predict the current rate of 63.9 percent to slightly increase in 2018.
- More affordable homes will be found in the suburbs (for the most part): According to U.S. News & World Report, the majority of more affordable housing will remain in the suburbs, particularly those of major housing markets. Suburban living will be exceedingly more affordable for cities like Houston, Austin, Dallas, Atlanta, and Miami. Exceptions to cheaper suburban living will include New Orleans, San Antonio, Denver, and Los Angeles.
- Mortgage rates may climb throughout the year: By the end of 2018, mortgage experts predict mortgage rates to reach 5 percent. This means that if you’re in the market to buy a home, it’s important to begin the process earlier in the year.
With such high expectations for next year’s housing industry conditions, make sure to stay up-to-date with today’s mortgage news by subscribing to our blog. For more information about the housing industry, or to learn more about home financing, contact one of our mortgage specialists today.