Just recently Redfin released its predictions for 2018. As with any news, there’s both the good and the bad, but let’s put something at ease. The anticipated housing bubble bursting can be put to rest. It’s not forecasted for 2018. Some homeowners will be impacted by recent tax policy changes (refer to your CPA). That is still not enough to discourage buyers as there are still many other advantages to owning your home. In short, here are Redfin’s predictions for 2018:
- They don’t foresee any significant change, except for a modest inventory uptick. Current inventory levels for start homes will remain for the most part its current level.
- Homeowners Staying Put:
- Capital gain tax modifications will keep homeowners in place. Since they will have to live in their home for at least 5 of the 8 years to take advantage of deducting gains.
- Mortgage Rates Heading North:
- 30-year mortgage rates are forecast to increase to 4.5-4.8%. This increase is associated with rising home prices, which will translate to a bump in principal + interest payments.
- Homes Selling Faster:
- 25% of homes sold in 2 weeks or less last year. 19% of homes sold within a week. It’s being forecasted 30% of homes this year will sell on the average 2 weeks. Which means buyers its time to begin pre-qualifying so you’re ready to bid!
- Millennials Going ‘Burbing’:
- This comes with a twist. Millennials will be migrating to the ‘burbs,’ however, they have specific requirements. They will move to suburban areas that posses a city-center feel, and amenities.
Overall, the predictions 🔮 are good for 2018 for both buyers and sellers! If you want to take advantage of a positive market, please don’t hesitate to contact me!😉