Increased Housing Inventory Coming in 2018

A wooden bookshelf shaped like the numbers 2018 sits on a wall in a modern living room.

What’s does 2018 hold for the housing market?

According to the Realtor.com’s 2018 Housing Forecast, prospective homebuyers have something to look forward to next year.

The Realtor trade group predict that home shoppers will finally have a healthy climate to purchase their dream home, thanks to a combination of increased housing inventory, slowing price appreciation and growth in Southern home sales.

2018 Realtor.com Housing Trends at a Glance

• Expected home inventory increase
• Slowed price appreciation to just 3.2 percent year-over-year
• Southern cities to lead growth in home sales
• More Millennials move to take out mortgages for higher-end homes

Increased Inventory

Finding a home in 2018 should be easier in some markets as housing inventory is expected to increase in the fall for the first time since 2015. Homes more than $350,000 are expected to be the majority of the inventory increase, making ownership of move-up homes more accessible to buyers. This inventory increase should help reduce prices of all homes and slow rapid appreciation of houses as competition for existing decreases.

More Millennials Homeowners in Higher-End Homes

2018 should see the market turn around, especially for homebuyers looking for a higher-end home.Millennials already dominate the market for starter homes, despite the prevalent myth that they cannot afford and do not want a home. In 2018, the largest group of the Millennial generation turns 30 and is expected to overtake middle-aged and older home shoppers for the largest share in mid- and upper-tier mortgages. Because of the sheer size of the Millennial generation, their mortgage market share at all price points could rise to 43 percent in 2018.

Major Growth in Southern Markets

Due to uncertainty with tax reform and rising home prices in Northern markets, Southern cities should lead the growth in home sales, outpacing national home sales by as much as 5 percent. Because Southern cites already have more available homes, the expected boost in inventory should sharply increase home sales. Cities leading the growth in Southern home sales are Tulsa, Okla.; Little Rock, Ark.; Dallas; and Charlotte, N.C.

Help for prospective homeowners is finally on the horizon. 2018 should see the market turn around, especially for homebuyers looking for a higher-end home.
After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a SEO Associate for (...more)

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