The rest of 2017 and early 2018 is expected to be interesting for real estate. The economy is solid, trade looks fine, and we’ve seen an active new construction environment. It’s possible with labor shortages and higher lumber costs there could be higher home prices with fewer houses for resale. In the ever interesting and ever-changing real estate market, here are some other influences that may affect housing in the coming year (and possibly beyond) as well as tried and true tips for homeowners.
Is 2018 the time to buy or sell your home?
Prices are still sizzling for buying a new home…there’s simply not enough homes for sale to go around. Lack of homes available isn’t just a local problem either – it’s a national one. In some markets, homebuyers will need to get creative (and pay more) when seeking homes with multiple offers, especially in the bigger cities.
Some experts think that with the lack of homes available, it means home prices will continue to be high. There’s really no guarantee that will be the case. Many home builders are feeling optimistic, and that’s always good to hear. Typically, an economy that looks good with lower unemployment rates, you may see more people investing in rental income property or real estate investing opportunities. Millennials are seeking housing as well, and this will all influence the housing market.
What’s economists are saying.
According to many top economists, mortgage rates may rise in the next few years, past 4% and even past 5%. If house prices experience stabilization, increased rates will be manageable. One online article cites the importance of wage growth happening. Chief economist for Mortgage Bankers Association, Michael Fratantoni, stated that “it is getting more difficult for companies to fill their positions.” Fratantoni hopes that companies begin to raise wages to seek more qualified candidates. If this happens, the increase of interest rates won’t be as problematic for borrowers.
Buying and Selling Tips that work in any economy.
We live in a global economy, and even though economists and experts can see trends happening in the real estate market, there’s no real way to know exactly what may happen. Natural disasters, political uncertainty, and more can affect our local market. Here are some tips, no matter the economy, that you can rely on if you want to buy or sell a home in 2018.
- Fix issues in your home before its sale. Want to get top dollar for your home? Fix the issues that may lower your homes’ asking price. Realtor.com recommends updating appliances, refinishing floors, and cleaning or replacing windows. Because I know the local market and neighborhoods, I can help you decide what improvement will be the best in your particular situation.
- Make sure your home isn’t priced too high. About 70% of all local homes go into escrow within 30 days of being listed. Homes still on the market for 60 days or more typically means the home is overpriced, especially in today’s market. With my help, I can make sure your home is priced right and ready for sale.
- Set a realistic timeline. The real estate market can and will change, so have a firm understanding of your priorities and what your motivation is for selling and/or buying that next home. Are you wanting to sell your home because of a job relocation or simply because you’re wanting a change? Know what is motivating you to move and be ready to be flexible if that dream house on the corner you’ve had your eye on sells or if your existing home doesn’t sell as quickly as you thought it would. Be realistic with expectations and listen to your Realtor® for advice and ideas if adversity strikes.
Buying and selling a home is always an exciting undertaking! As a licensed Realtor® it’s my goal to help individuals and families during the entire real estate process, sharing my understanding of the market conditions as well as recommended strategies to use in any economy. 2018 will be here before we know it, and that means a fresh start and maybe even a new home! Contact me for all of your real estate needs at (618) 978-2384 or email me at Sandie@SandieLaMantia.com.