Below are 3 expectations for the real Estate Market of 2018. Keep in mind this is a national forecast. Local markets such as Somerville, Bridgewater, Raritan, Branchburg, Hillsborough, Warren and others can differ from these forecasts.
The first expectation of 2018 is for inventory to remain low, although pick up slightly compared to 2017. The biggest reason for this modest optimism is that the current situation is unsustainable. Prices cannot rise faster than wages forever. Plus, life events will eventually force reluctant sellers off the sidelines. Home search site Trulia found that 31% of Americans believe 2018 will be a better year then 2017 to sell a home, far more than the 14% who this it will be worse. (Though only 6% of homeowners say they plan to sell.).
Prices are expected to increases at a slower rate compared to 2017. National home prices have climbed for 23 consecutive months. From January through October 2017 the Case-Shiller U.S. National Home Price Index increased 5.92%, on track for the biggest gains since 2013 when the market was finally recovering from the bust. However, this is expected to eventually slow in 2018.
Experts tend to agree mortgage rates will finish the year between 4% and 4.5%. That’s a touch higher than the rates for most of 2017 but still historically low.
To learn more about the real Estate Market Forecast please contact Claudia Marrone and Matt LoBrace.
This post first appeared on Bridgewater NJ Real Estate, Homes For Sale In Brid, please read the originial post: here
