The housing market in the U.S is a complex thing to understand and keeping track of all the economy patterns and trends is even harder. So luckily for you, we did it ourselves.The economy affects all of us so we’ve taken the time to collect 8 estimations for the U.S housing market this year. Or more specifically, the Los Angeles area.
The Sellers will have the Advantage in the Real Estate Market
As of now, there is much more demand than supply. That means too many people wanting houses and not enough houses to buy. So understandably, an economic reverse would have to take place for buyers to have the advantage and quite frankly, that doesn’t seem likely to happen in 2018.
Affordable homes will continue to Decrease
As we’ve already mentioned, there’s a noticeable shortage in supply. So people buying these homes quite likely will have increased mortgage rates as well as raised house prices. And put simply, lets just say you don’t want to be in a region with ascending job growth paired with deficient supply.
The Nation’s Economy will Grow Stronger
This is said with a bit of hesitancy but specialists are attributing the prospective gains to tax impacts. Spending by consumers is expected to increase even more as a result of job growth, wealth gains, and higher customer assumptions. It’s being said that customer attitudes are almost at an all-time high for the decade, with fewer stressing over legislation unpredictability, thanks to the clarity shed on tax reforms. Retail sales have grown stronger, giving evidence to consumer’s new-found conviction as well. Grouped with the persistent spending of businesses, and there don’t seem to be any threats to the markets.
Mortgage Interest Rates will Continue to Increase
This year, rates will proceed to rise in their leisurely pace. Rates are expected to ascend by nearly 20 basis points thanks to small inflation and little interest rates in foreign banks. The only way for mortgage rates to significantly rise is increased inflation, which doesn’t seem to be in the books for 2018.
Inventory Supply will Remain Low
This will continue to create issues as demand is only getting stronger. People looking for economically convenient choices are out of luck, as new building seems to be for buyers willing to spend a lot of money. Unfortunately, even with the increase in average homes presumed to be built this year, it will still be inadequate for the amount of people looking to buy. And if you’re trying to wait out current home-owners, then you’ll probably need to find a new past time since most are enjoying a small mortgage rate and cheaper home price a bit too much to want to sell. And let’s not forget that tax reforms can possibly cause a substantial decrease to more supply for the new year, so most would want to stick with the smarter option of keeping their home as of now.
The Housing Market will be Unfavorably Affected by Tax Changes
The House Republicans’ Tax Reform has the potential to leave a terrible effect on housing markets country-wide. Even more so in areas that are currently constricted by price complications and the need for more houses. Current homeowners will also be less likely to put their houses on the market, not wanting to risk their grandfathered tax reductions, and plenty of buyers will no longer feel motivated to look for a new home.
More New Home Buyers will pop up
As more and more people near their “thriving” thirties, we can expect an increase in people looking to buy homes. This will increasingly affect the next couple of years, even though these new buyers will be confronted with price complications of their own that will stop a few from purchasing.
More Construction will occur in urban areas thanks to Millennials
Most millennials will be looking for places with more average houses, townhouses, and all the features of comfort they can get their hands on. This will most probably boost efforts in reviving affordable areas near down-towns. As for the older generations, we can expect some home sales from them as retirement communities grow in demand.
Woodland Hills Real Estate Agency
Provides service in English, Spanish, Farsi, Hebrew, French, Arminian, Russian, and Arabic
Call at (818) 770-3660
Address: 22020 Clarendon St suite 200, Woodland Hills, CA 91367