Real Estate Industry Outlook
What to Expect in 2018 and 2019
The National Association of Realtors® (NAR) predicts the number of existing home purchases will rise 2.8% in 2018, to 5.8 million. NAR also expects the prices of both existing homes and new builds to rise in 2018, predicting a 3.5% increase in all home prices.
Kiplinger suggests Hurricanes Harvey and Irma will hamper new builds, as building resources focus on repair efforts in storm-affected areas. This shortage of skilled workers and increase in development costs will cause higher land prices in those markets.
However, Kiplinger reported in October 2017 that sales of new homes will likely continue at a healthy pace. This year’s rising prices, they conclude, indicate lean inventories and robust demand in many markets. The limited supply has enabled sellers to increase their asking prices.
Business Insider attributes this seller’s market in part to the increase in the number of prospective homebuyers, which has been propelled by steady employment growth and low mortgage rates.
In 2019, Business Insider predicted back in 2016, we’ll see the power in the housing market shift from sellers to buyers.
The predictions of Zillow's chief economist, Svenja Gudell, support this. In a 2016 report, he wrote, "As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years."
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