The Real Estate Market in 2018: What to Expect

Whether you are looking to buy, sell or rent property in 2018, you need to know what you are up against. The real estate market continues to evolve from year to year, and staying aware of shifting trends is key to success. As we enter into the new year, let’s look ahead at the prospective real estate market in 2018.

Buying

Competition for homebuyers will likely grow in 2018, a continued trend over the past several years. High rents and low income growth makes it difficult for potential first-time buyers to build savings. Interest rates and mid level housing prices are expected to rise this year, though more affordable homes will still be found in suburbs and outlying neighborhoods. Therefore, this is not an ideal environment for buying. This reality is reflected in potential home buyers’ hesitancy. According to a recent Trulia survey, just 25% of respondents believe that 2018 will be a better year to buy than 2017. So, if you are looking to buy this year, diligence, preparation and timing will be key to finding your ideal property and beating out the competition.

Selling

With climbing home prices and low inventory, 2018 should be a good year for sellers. And potential sellers seem to know it. According to the Trulia survey, 31% of respondents believe that 2018 will be an even better year to sell than 2017. However, only 6% of homeowners currently plan to do so. This market will likely bring sellers plenty of opportunity, though it may keep potential first-time buyers from pursuing homeownership.

Renting

Most development in recent years has been meeting the demand for rental options. New construction has focused on multi-family housing and community living buildings that blend commercial and residential needs. However, while there are more rental options, those apartments and condominiums are shrinking in size. Many developers are building units with less square feet knowing that renters will compromise. In spite of this, because of abundant inventory, renters will have more power to negotiate and should experience relief in rates and incentives.