2018 Housing Market Trends
We are just days from the start of the New Year, which makes it an excellent time to look ahead to what to expect in real estate as we move into 2018. As a recent US News article outlines, “homebuyers will still face headwinds, sellers remain in the sweet spot and renters may see more incentives and negotiating power.” Here are a few factors to keep in mind as you consider making your next move.
The seller’s market will continue to reign, which means some buyers feel dismayed as “high rents hinder would-be first-time buyers’ ability to save,” and home prices continue to rise. Purchasing in the New Year will not be impossible, however, especially if you align with a real estate agent that understands timing and will provide diligent research “and keep a close eye for new properties coming onto the market.”
Anemic inventory will also continue to impact the housing market, because “new construction hasn’t kept with the growth of U.S. households” and most new projects have delivered multifamily buildings rather than single-family units. In markets such as Seattle in particular, most multifamily options being built in the current decade are offered for rent, which makes new construction condominium options in the Emerald City a hot commodity.
The final consideration for buyers will be a look at the expected changes the tax reform will bring. Though it is not expected to have a prolonged impact on homeownership, would-be buyers are encouraged to review changes to tax policy that relates to homeowners. Some of the many changes will include a deduction increase that means it may no longer make sense for homeowners to itemize deductions, a decrease to the amount of mortgage interest that can be claimed, a $10,000 limit to the property tax deduction, and more.