The housing market in 2018 is set to greatly benefit home sellers. Buyers beware, prices are going up. This is especially true in areas where the housing market already has inflated prices.
The end of 2017 saw jumps in housing prices and this trend looks like it will continue throughout 2018.
There is a significant lack of properties for sale. Many properties are occupied or being rented. When a property pops up on the market it is a rare occasion in many neighborhoods. This is made worse by a high level of demand.
Many people are finding financial stability and are seeking a house to buy. With few houses on the market and a massive amount of buyers, the prices are being forced up.
In many markets, the houses are not only increasing in price but they are overvalued. The market becomes overvalued if the price of the homes are ten percent over what the sustainable level is. Hot markets are seeing many homes hitting this point and there is no end in sight that is going to help decrease these prices.
The top ten markets are seeing the most price increases. Out of these ten markets, seven of them have already hit the overvalued mark. The other three are sure to follow suit as 2018 progresses.
Unfortunately, there is little to stop the trend of overvaluing houses. The best way is to construct new homes in the area. Many areas have no land for sale or room for new constructions. This can make it impossible to build a house instead of buying one.
That does mean areas that are less populated and have less demand for housing will see a lower increase in pricing. If there is more room to build and more properties available there will be less demand.
Many buyers may have move to areas that are significant distances from their desired location. That is, unless they manage to scoop a house up as soon as it lands on the market.
If rising prices weren’t enough, buyers are going to see more bad news in 2018. Mortgage rates are set to increase throughout the year. The earlier a buyer makes a purchase the better. By the end of the year, these rates could make a significant jump, which may continue into 2019.
There is a new tax policy that is also affecting buyers. It is changing the way homeowners are able to deduct on their mortgage or property. With all of these factors coming into play, 2018 is could be a tough year for buyers. The housing market has a lot of competition and all buyers are feeling desperate to make a purchase early in the year.
The new year is bringing about a lot of changes in the housing market. Buyers are going to see increase mortgage rates, higher prices on houses, and tax changes that affect their properties. The market is catering to the seller. If looking to buy in 2018 get ready to put in a lot of hard work as these trends continue to favor sellers.