As we approach the end of the first quarter of 2018, several trends seem to be emerging about our local economy and its housing market, as well as the same general trend across the country. Can our local market…and the forecast for the remainder of the country in 2018 be the same? Read More……..
I read an interesting article published by Realtor.com lately and the national forecast predictions….and what is happening in our local market seem to be on the same path. Hal & I have been long time user’s of the Realtor.com site to market our properties. Part of the reason for its popularity among American home buyers is its pledge to update its data every 15 minutes. Compare that to another widely used site like Zillow, who only updates there data base every 48-72 hours. That’s impressive!
1] Inventory will Increase. The trend for 2018 will be a higher monthly inventory of homes over 2017 inventory level’s. Realtor.com has a seen a steady national rise from month-to-month in home inventory levels. Great for buyers….not to good news for the seller.
2] Price Appreciation will Slow. “For Sale” Home prices will only rise during 2018 by about 3.2%, compared on the national level for 2017, which was a 5.5% increase in home prices. Most of the price softening will be in the upper end homes segment. The entry level homes, or what we call “starter homes”, will continue to enjoy “fly off the shelf” status for 2018.
3] Millennial age buyers will Gain Market Share. Although this 18-35 age group will face huge challenges in buying a home with rising prices and certainly rising interest rates, that age group is on track to overwhelm the mortgage market for 2018. New mortgage applications by millennial’s could reach 43% of all home buyers for 2018.
4] Southern Markets will Lead the Sales Growth. Southern cities will beat the national average in home sales growth for 2018. Lakeland, Winter Haven, and Cape Coral leading in Florida. Sales are expected to grow by 6% or even more in these markets in thew south. With years of slow economy, it is sure that the SW will see great growth in sales numbers for this year.
You can be the judge about determining how our local housing market follows…parallels…trends…with this national report conducted by Realtor.com. What caught my eye in the first place was the similar path our market seems to be heading….which is exactly like the Realtor.com model forecast. I hope it all comes to pass! Its all great news for our city!!