2018 is here, and with it comes significant and most-welcome shifts in the housing industry, including an ease in the housing inventory shortage. The industry would see more manageable increases in home prices and an acceleration of home sales. Hereunder are more trends to watch this coming year.
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| Image source: realtor.com |
Analysts from Realtor.com, the popular real estate listings website, predict that millennials will begin to increase their market share of homeownership in 2018. They also see home prices appreciating by as much as 3.2 percent this year. Because of this, home sales are seen to pick up by 2019.
Existing home sales are forecasted to rise 2.5 percent as the trend in low inventory begins to reverse its course. In line with this, mortgage rates are expected to average 4.6 percent throughout the year but reach 5 percent for the 30-year fixed-rate mortgage by the end of 2018. According to the Mortgage Bankers Association, these rates will continue to rise and could pass four or even five percent over the next few years.
Even as existing home sales increase, new home sales will increase further, meaning housing projects will also rise. Housing starts are predicted to increase by 3 percent over the year, but single-family home starts will increase more at 7 percent. The same 7-percent trend is expected for new home sales.
Finally, one bit of good news: homeownership rates will stabilize at 63.9 percent after having hit rock-bottom in the second quarter of 2016.
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| Image source: straight.com |
Homeowners Association management company AMMCOR, Inc. is a gem to the community as it holds memberships in various organizations such as the Rotary Club, American Humane, ASPCA, Best Friends Animal Sanctuary, Mission Hospital, and South Coast Literacy Council. More housing news via this Twitter page.
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