At the beginning of every year, real estate professionals pull out their crystal balls and do a bit of prognosticating about what’s to come for the industry in the new year. 2018 holds some big unknowns, including the effect tax reform will have on the overall market and how much price growth will continue to grow over its recent red hot pace. Fortunately, the experts at realtor.com are here to offer their own clear-headed analysis about what’s to come.
Realtor.com’s Predictions for 2018
- Home price appreciation – Home prices are expected to rise 3.2% next year. This slower rate of increase will allow for home sales to pick up next year.
- Mortgage rates – Mortgage rates are expected to average 4.6% throughout the year, but reach 5% for the 30-year fixed-rate mortgage by the end of the year. The Mortgage Bankers Association also predicted rates will continue rising, saying mortgage rates could pass 4% or even 5% over the next few years.
- Existing Home Sales – Existing home sales are forecasted to rise 2.5% as the trend in low inventory begins to reverse course.
- Housing Starts – Even as existing home sales increase, new home sales will increase even more, meaning housing starts will also rise. Overall, housing starts are predicted to rise 3% over the year, but single-family home starts will increase 7%.
- New Home Sales – These will increase at the same rate as housing starts, rising 7% year-over-year in 2018.
- Homeownership Rate – The homeownership rate will stabilize at 63.9% after having hit bottom in the second quarter of 2016, realtor.com forecasted.”
Call Tienken & Associates for More Local Analysis
Of course in a market as dynamic as the Portland-metro area, not all these predictions will necessarily apply. If you’re planning on buying or selling in 2018, we can help you better understand the forces at play in our local market and in your own neighborhood. Call us today at 360.495.3721 or fill out our contact page and we’ll get back to you right away.