Best Real Estate Predictions for 2018

Real Estate Broker/Owner with Vision Realty

There is a lot of news going around about the real estate predictions for next year. As 2017 winds down, many of us real estate agents are looking towards the next year to be a very lucrative one. Rates are still reasonably low and many markets across the US are exploding. There's a lot of major markets that have very low inventory with pretty high demand.


Let's take a look at what a lot of economists and real estate companies predict for 2018.


Interest rates will go up about .4% and inventory shortages will drive the housing market. We are finally seeing and the fact from builders not making enough houses a decade ago. Are more millennial's coming into the real estate market and there's just not enough houses to supply the need. Economists predict that there will be 12% fewer homes to choose from nationwide that there were just a year ago and 51% of the active listings will be in the top one-third of all home values, and this might mean these homes are affordable for first-time buyers.

Builders will start to focus on entry-level homes. Just as they did 12 to 15 years ago, builders and developers will need to focus on entry-level homes for first-time homebuyers. This will jumpstart new buyers into the market.

Many homeowners will remodel their houses rather than sell and there will be fewer people looking to buy and even if you were looking to rent. This could be a big impact on home prices going into 2018. Many rental prices have increased exponentially over the last several years that it just makes more sense for people to buy.

Millennial's and young people will move out of their parent's basements and into the suburbs. I truly feel that this is a definite. More people, especially those 25 to 35, will be moving out of either dorm rooms, renting apartments, or their parent's houses and moving into their own house and the won't be renting either. Many of these millennial's will be looking to the suburbs for either a starter home or even a midsize home as long as they can afford it.

Home design will be driven by millennial's and baby boomers. This is the majority of the population right now and while many developers will be building starter homes built on a high-efficiency and practicality, many baby boomers will also be the driving force in home design. New homes and renovated homes will feature designs that appeal to both millennials and baby boomers such as wider halls, frameworks that make it easier to create additions, and stronger support beams able to be manipulated and manufactured into an appropriate design later on.

Home prices will finally slow down a bit. But, I said a bit because 2017 has already been full of record-breaking home price growth and incomes will not increase as fast as home prices. Many economists predict that home prices will climb about 4% in 2018, 1% higher than the normal but much lower than the current pace of nearly 7%.


Knowing what's predicted for 2018 can help buyers, sellers, and Realtors® work up a plan for the next year to fit their budget and their goals. Call me for all Columbus real estate and join me over on Linkedin where this post originated.

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columbus, lewis center and gahanna real estate

Columbus Ohio real estate - Vision RealtyAs a certified Realtor® for the top-rated Columbus Realty Firm - Vision Realty, with 32 years of dedicated real estate experience, I can help buyers, sellers, investors, short sale sellers and more find, sell or invest in the right property, at the right price, at the right time. Contact me anytime for updates and information on the Columbus OH Real Estate market.


Donald Payne - Vision Realty, Inc.
4608 North High Street

Columbus, OH 43214

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Bob Canning
Team Greene Real Estate - Rexburg, ID | Team Greene Real Estate

Donald, I believe that these predictions are spot on. We are seeing these very things happen in our area here in Idaho. One issue that I see with the millennial's is their ability to borrow. Many of the millennial's that I talk with have a great job and would love to get a starter home, but cannot because they have so much student loan debt. This is becomming a hurdle that they will have to address. As far as inventory in our area, we are still suffering from lack of home builders because of the 2008 fall out. Many of them just disappeared. Of the ones that survived, some are just not that good of quality. All in all, I think 2018 will be a good year for any agents that want to put the work in.


Dec 07, 2017 11:22 AM #1
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

I agree with pretty much all of your thoughts. However, there needs to be a compelling reason to build first timer homes when higher priced product is moving so well. 

Dec 07, 2017 05:45 PM #2
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Lifetime Friend/Helper!

This seems to run in 25-35 year cycles Donald Payne .  Some economist predict that it will all take a dive by 2020.

Dec 07, 2017 05:57 PM #3
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Hang on to this post - next year at this time you can look back and see if your predictions came true.

Dec 07, 2017 08:15 PM #4
Kathryn Acciari
Cameron Real Estate Group - Shrewsbury, MA
RSPS, SRS, REALTOR(R) Sturbridge-Shrewsbury MA

Your predictions make sense to me, Donald. Wishing you great success in the New Year!

Dec 08, 2017 06:46 AM #5
Anna Hatridge
Goodson Realty - Farmington, MO
Missouri Realtor with Goodson Realty

Good intuition for things to come.  We are already seeing some of these occur in our area.

Dec 08, 2017 12:58 PM #6
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

One thing I caution on is the over generalization of age groups.

There is great diversity among all age groups.

We can count on a fact: We Will See Change.

Thanks for sharing your predictions, It will be interesting to revisit them a year from now.

Dec 09, 2017 07:53 AM #7
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

There is a severe need for 'affordable' housing everywhere yet the building I see most often is higher priced homes--certainly out of the reach of a first time buyer--unless it is an hour or so away from city services.  Will have to check back in a year to see if your predictions were correct!

Dec 09, 2017 12:44 PM #8
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Donald

It will be interesting to see where things go in 2018. The prices here are pretty high and finding affordable housing for first time buyers us a real challenge, and we have a general shortage of housing anyhow. I don;t see builders in our area building homes many first timers can afford.

And rentals are becoming more and more difficult to find, and less affordable.


Dec 09, 2017 08:20 PM #9
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Interesting perspective, yet, only time will determine if the real estate forecast shall become a reality. I don't see that happening, although, I believe it will eventually but not until the 3rd or 4th quarter of 2018. Affordable housing is necessary, however, who determines what the affordable index is in real estate?   

Dec 09, 2017 11:13 PM #10
Sal Poliandro - NJ Bergen County Realtor
RE/MAX Properties - Ridgewood, NJ
Short Sale Specialist - CDPE, SRES, SFR, IRES

Can't wait to look back on this at the end of 2018. Enjoy your predictions. 

Dec 10, 2017 06:23 PM #11
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

I don't think there is going to be much change in the Sedona Arizona market next year. Our market is second homes or retirement property. We are seeing more cash deals because people are pulling money out of thier savings which has expanded greatly in the last 10 months.

Dec 13, 2017 09:09 AM #13
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Interesting predictions.  I agree with all.  In Arizona we have a construction labor shortages due to our Senate Bill that sent a lot of skilled workers back across the border.   

Dec 26, 2017 06:56 PM #14
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