What’s in store for the nation’s housing market in 2018? The National Association of Realtors offers a glimpse at some of the most significant changes that are expected. Here are five key takeaways:
Housing inventory is expected to increase. Strong demand has depleted the inventory of available homes in markets throughout the country. The association projects U.S. year-over-year housing inventory growth to enter positive territory by fall 2018 for the first time since 2015. That’s good news for home buyers. Most of the inventory growth is expected in U.S. homes priced above $350,000, followed later by lower-priced starter homes.
Price appreciation expected to moderate. U.S. home prices are forecasted to slow to 3.2 percent growth year-over-year nationally, down from about 5.5 percent in 2017. Appreciation likely will end up being highest with lower-priced entry-level homes, which continue to be in extremely high demand.
Millennials will be a bigger part of overall home buying activity. Millennials are on track to comprise about 43 percent of home buyers taking out a mortgage by the end of 2018, up from an estimated 40 percent in 2017. Their influence on the US. housing market is expected to grow in the coming years.
Demand is pushing home sales higher in the South. Cities such as Tulsa, Okla.; Little Rock, Ark.; Dallas; and Charlotte, N.C. are expected to see home-sales growth of 6 percent or more, compared with 2.5 percent nationally.
Uncertainty surrounds tax reform. Tax reform could have a positive effect on housing in some respects, not so much in others. Stay tuned.