As we quickly approach 2018 many home buyers are wondering what the real estate market will look like in the new year. While none of us have a crystal ball for the Northern Virginia area, many experts have given their opinions on what to expect in the coming year. Arming yourself with this knowledge can better prepare you to compete with the challenges expected such as inventory shortages, suspected rising home prices, and other topics we will cover in this blog. Let’s get started.
Housing Inventory Shortage
This has been a plaguing problem for all of 2017 and experts expect it to carry well into 2018 with inventory not nearing supply demands until sometime around fall, as predicted by Realtor.com. This continues the frustration for many home buyers who currently are flooding the market in the Northern Virginia area, but are seeing little return on their efforts due to the inventory crisis. The game changer for the inventory shortage will be the huge push coming out of new construction will create opportunity for people to move up into new homes. This addition of new homes is needed because clearly the reallocation of people into the same existing homes is not working. So, to all the home buyers who have been frustrated by lack of homes that meet your needs and your budget, relief is on the way. You will still have to follow the rules from my previous blog Housing Inventory Shortage What To Do.
Rising Home Prices Will Slow
2017 saw home prices increase an estimated 5.5%. 2018 is forecasting that number to be closer to 3.2% growth year-over-year nationally. This will offer relief mostly to those buyers in the higher price points, which tends to be our Northern Virginia housing market. The lower pricing bracket will see little reprieve due to the limited availability of the entry level homes.
Mortgage Rates Remain Low
Rates have continuously hovered around the 4% marker and are forecasted to remain relatively close to that rate. Some experts say the country could see 5% rates by the end of 2018 and spilling into 2019.
Many buyers believe Spring is the start of the home buying season when in actuality we as realtors see our peak time start from mid-January to April. Contact me now so we can start strategizing your home buying journey for the most advantageous results in 2018.
If you have any questions or comments please contact me at firstname.lastname@example.org.
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Nikki Lagouros, Realtor, KW-Reston, The CAZA Group