We’ve just gotten started with 2018, but there’s been speculation about which way the housing market will go since well before the first of the year. As a savvy homeowner, it’s important for you to be aware of fluctuations in the market, especially if you’re thinking of buying a new home or making changes to your current home in the near future. Much of the predictions for this year are based on how the market fared last year, so we’ve gathered together a short year-end review of housing market high (and low) points from 2017, then turned to the experts for a glimpse at what the future may hold.
A Look Back
According to Realtor.com, 2017 was a fairly decent year for the housing market. Inventory continued to be in short supply, but not as badly as in previous years, causing brisk sales and shorter times on the market compared to 2016. The median existing-home price reached $248,000 in November — the strongest level in over a decade. Overall, though, sales and starts were flat compared to previous years.
If you bought last year, you probably got a pretty good price and an excellent rate, and avoided the changes predicted for the coming years. Here are additional highlights from 2017’s housing market:
A Look Ahead
Experts predict an easing of the market for 2018, with inventories increasing and causing a slowdown in rising prices. The South is expected to be a strong market, and millennials will likely have ever-growing influence on housing trends across America. Entry-level-priced homes will still see price gains as more potential buyers flood the market, leaving high-end homes to languish or sellers to drop their prices to more competitive levels. Forbes, however, argues that changes to appraisal regulations will increase costs, which are passed on to the homebuyer.
If you’re buying with a mid-range budget this year, you may want to make your move early to avoid rising prices. Higher end buyers can wait until that end of the market is saturated, but beware of rising rates.
Sellers may want to consider adding features important to Millennials when preparing for the market, such as Internet of Things accessories and energy-efficient appliances, and have a robust online marketing plan in place.
Other possible trends to be on the lookout for in 2018 include:
Of course, no one can predict the future, and much of the talk around 2018’s housing market is based on patterns established over the past several — or many — years. But whichever way the market goes as 2018 marches on, there’s no need for guesswork when it comes to your home financing needs. To ensure you’ve got the best options for your situation, contact a BankSouth Mortgage loan officer today.
View our latest news and get the latest industry updates on our blog.