What We Can Look Forward To In 2018
All the experts say we’re almost there! This should be a good year for sellers and a pretty good year for buyers and renters. 65% – 75% of millennials will be buying homes or renting in 2018. According to USA News, in 2016 most single millennials preferred to rent in multi-unit apartments or condos, preferably high rise units closer to the city. That seemed to be turning around in 2017 and they have been moving closer to the suburbs on lower level units or homes. Surveys show that 2018 single millennials seem to be reluctant to buy for fear of the debt but are considering the investment.
Certainly millennial families make up the highest percentage of families buying in the suburbs. They seem more ready to make that investment because their salaries have increased. However, sorry, those student loans haven’t gone away yet. However, there is still a shortage of building for those families so timing is everything. According to Trulia and real estate.com there may be more building in the last quarter of the year. Buyers must still be diligent in their search for homes as prices are expected to rise by about 5%. Because of the tax changes it will be the upper tier areas that will be most affected, like Boston and California which may have buyers saying “Wait, let me think about these prices.” However, they may still find them worth it because of all that those places have to offer, such as the sunny weather and ocean views. Homes that are attractive around $400,000 won’t be affected at all by tax changes.
When it comes to home sales growth, you can definitely bet on Southern cities to beat the national average in 2018. “Southern homes are selling like crazy.” According to reator.com, especially look at “Tulsa, OK, Little Rock, AR, Dallas, TX, and Charlotte, NC. Those markets are expected to see 6% growth or more, compared with 2.5% nationally.”
The South has been attracting sales growth for some time and you should continue to bet on it over the national average in 2018 for low costs of real estate and living in general. They have a strong economic growth and strong household growth, as well as an accommodating attitude toward builders. Those areas are setting the stage for an accelerating boom in homeownership.
First time buyers will have to decide what’s most important to them. Do you want to live close enough to walk to stores or to your job? Do you want the suburbs, where it’s safer for your children? Is cost most important? Is the resale value most important to you? These are the questions that you should be asking before looking for your first home.
For sellers, enthusiasm is up, primarily because home prices have continued to climb in recent years. The Trulia survey reports that 31 percent of respondents believe 2018 will be a better year to sell than in 2017. Only problem for buyers is that it doesn’t necessarily mean there’s more options open for them unless there’s more construction. Americans may feel it’s a great year to sell their homes, but only 6% currently plan to do so in 2018. Present residential owners don’t seem ready to move yet in large amount. There’s still stiff buyer competition, so it’s still all about timing. Unless you can afford the higher taxes imposed by the new Republican tax bill in the higher tax brackets, you may have to wait for a house in those particular suburbs. In those areas, sellers are concentrating on building more condos to accommodate small families and single millennial first time buyers. Those areas can still be in the suburbs and can still be near the ocean views or chosen amenities but you’ll have to wait for a house if avoiding high taxes. Keep looking and, if willing, look in the friendly Southern states where they are building affordable houses.