2018 Real Estate Forecast
2018 Real Estate Forecast
Here we are in 2018. What did you learn in 2017? Good, Bad, Ugly, indifferent? Come-on, it has to be something?
What would you do different should it occur in 2018? If it was a 'bad' one-time thing, what happened that you should watch for that would help you prevent a repeat of the same event?
What are your plans for 2018? Have you made a decision to talk to your boss about a raise? Or do you plan to make a career move? Where do you want to apply for that next position? What does it take to get noticed when submitting your application? If your career takes on a different focus, will that require you to relocate to a different community, city, or state?
If you are thinking of relocation, now is the time to start planning. Whether you relocate in two months, six months, twelve months or eighteen months, what you do now to get ready makes all the difference when making the final decision.
The housing market is in a state of change. It has been since 2000. Prices going up, prices plummeting, and now prices on the rebound. Most people believe the past two or three years has seen a dramatic increase in residential values across the country. When you take a look at historical appreciation though, we are currently at the levels we would have been had the crash not occurred in 2007/08.
A portion of the increase we are seeing today is caused by the lack of adequate inventory across this country. Some experts are now saying that 2018 is going to see a return to a more normal market. Increased inventory in the market will give buyers a better opportunity to choose the house that they 'really' like, instead of making offers on houses that may suit them, but they feel a need to purchase something before it is sold.
One expert believes that houses are in short supply because 1) Boomers will not move; 2) Landlords do not want to sell because rent prices keep going up; 3) Owners are comfortable with the low interest rates they currently have on the home mortgage; 4) Builders are ignoring entry-level buyers; and 5) Regulations have added expense to the development of new homes.
What is changing? Appreciation is expected to decrease in 2018 after the rapid increase to catch up to normal levels. Based on appreciation, a house priced at $100,000 in 2000 would now sell for $147,968. In addition, home inventory is expected to increase later in 2018; and mortgage interest rates may start a slow increase as our economy changes with the recently passed Tax reform.
So many aspects of this market to consider, but now is the time to plan for your family's future. Speak with a loan officer to determine what your purchasing power will be in two months, six months and twelve months. Knowing this fact will provide you with the knowledge necessary to make informed decisions when the opportunity you are looking for presents itself.
Terry Pauling is a Broker, REALTOR® and ALC at EXIT Realty North Star, 222 W Salem Ave. Indianola, IA 50125. We provide full-service real estate services to the Indianola, Warren County and Des Moines, Iowa metro areas. Find Links and contact information for Terry at www.exititown.com. (C) 515-249-9192
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