As we move further away from the holiday season, the real estate market has started to grind back into full gear. We have already received several calls from buyers and sellers looking to capitalize on this momentum. If the new year has prompted thoughts of buying our selling, we thought this Washington Post aggregation of real estate forecasts for 2018 would be of use. The full article can be found HERE, and we’ve summarized the main points below:
- Most real estate economists are still expecting appreciation, but at a slowed rate from the rapid price increases of the last several years. Continued low inventory will drive prices upward. That being said, there is an anticipation (see HERE) that the new tax bill may slow the increase in housing costs; however, this may only occur in certain price brackets.
- Part of the reason for a potential slowdown in the market appreciation is the looming increase in mortgage rates. The Mortgage Bankers Association is predicting increased volatility in rates, with 2018 rates increasing to 4.5% from 4.0% in 2017. There is an expectation that rates may eventually plateau around 5.0%. That being said, the prediction of a rate increase has been bandied around for several years, so this is far from set in stone.
If you have any questions on how these potential changes impact your buying or selling power, give us a call! We’d be happy to treat you to coffee and answer any questions you may have.