2017 surprised everyone in real estate. An unstable political climate and unbalanced real estate market meant many prospective homebuyers were left in the dust. While you begin researching what the 2018 housing market will entail, be sure to keep this in mind - the market isn’t likely to pick up soon, especially for first-time home buyers. Below we’ll be outlining a few key trends. Ultimatey harsh reality that things may not be looking up for first time home owners in 2018.
3 Harsh Truths that Sum Up 2018 Housing Market Forecasts
Slightly More Balanced Housing MarketInventory is projected to increase moderately in 2018. However, economists have projected that new construction will not correct consistent inventory shortages. Builders cannot continue to build with the high cost of land, raw materials, and construction labor, according to Forbes.
Rising Interest RatesFor the past few years, the real estate industry had predicted rising interest rates, however, this has yet to materialize.
Rising Mortgage RatesRealtor.com projects mortgage rates will increase steadily throughout the year and increase a total of 5% by the end of 2018.
Bottom Line - It’s Not Looking Good for First-Time Home Buyers
Rising mortgage and interest rates coupled inventory shortages mean it will be more difficult for first-time home buyers in 2018. Millennial homebuyers in competitive markets will hardly stand a chance with increasing property taxes and higher prices. While stable home buyers fare a better chance of purchasing in 2018.
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