With the new year just ahead it's important that we know what to expect in the housing market . Any buyers that have been waiting it out for home values to drop may be waiting much longer than anticipated.
4 things to expect in the 2018 real estate market:
1. Inventory shortages will continue to drive the market, especially in SoCal. Yet, expect slower gain than in 2017 and years past. The median price of an existing home is said to increase 4.2 percent to $561,000 next year, creating more of an affordability issue with first time home buyers.
2. With low inventory and no extensive plans for low to medium income housing construction, many Millennials will be pushed out of the major cities, into the suburbs or out of state.
3. Good news is interest rates are predicted to stay low for home buyers. Rates for traditional 30-year fixed mortgages are expected to rise to 4.3 percent in 2018, up .3 percent from 2017.
4. It is an excellent time for homeowners to list their property with home values being so high and pre-qualified buyers ready to bid. However, inventory is tight for relocation in SoCal. This may motivate some homeowners to remodel rather than sell.
Conclusion: Now more than ever it is important to choose an experienced Realtor who knows how to win homes for all types of home buyers. If you're a home buyer that is concerned about affordability, or a homeowner concerned with relocation, contact us. We work with the best mortgage lenders in the industry and are experts at placing our clients in competitive SoCal neighborhoods. We love what we do and the proof is in your continued success!