2018 Housing Market

Posted on at 4:31 pm by Andrea Webber

2017 saw another record year for home prices so what is in store for the 2018 housing market?

The real estate industry is possibly the healthiest it has been in the last thirty years and the economy is stable, but how high can we go? Many experts predict that there will be up to four interest rate hikes before the year is out, making homes even more unaffordable.

Low inventory has been a boon for sellers and it’s still a great time to jump in on getting your home on the market before mortgage rates do go up and reduce the pool of potential buyers.

Most affected by continually rising home prices and looming interest rate increases are those attempting to get into the housing market for the first time. Millennials, the new largest section of society hunting for a home are simply finding that they cannot afford one. As the first generation in US history to enter adulthood in worse economic shape than their parents, many are forced to put off homeownership.

Although most do agree that it is important to them to be able to own a home, fewer than 25% under the age of thirty can do so, compared with 80% from their parents’ boomer generation – according to the National Association of Realtors.

Looking at sixteen years to save up down-payments and afford a mortgage payment, the choice is to continue to remain in the family home. Two or more generations living under the same roof is now at a level not seen since World War II. Student debt plays a massive role. Households with student loans have a median net worth of $8,700 compared to $64,700 for households without student debt.

The question for the 2018 housing market, and going forward, is how high can prices go, even with the US Census Bureau prediction of single-family housing starts increasing 9% this year?

Positioning a home for a sale or a 1031 exchange while inventory is still low is now more important than ever to maximize on this unprecedented market. Contact me for a no-obligation consultation.

Andrea – Your Ski Resort Real Estate Advisor and Local Expert.




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