Posted 12/04/2017

Google+
LinkedIn
Reddit

Forecast predicts boost in housing inventory, sales in 2018

Aly J. Yale

The Mortgage Reports Contributor

An end to the shortage struggle? 

The days of strapped housing inventory – and the higher prices that come along with it – may be numbered. According to Realtor.com’s 2018 National Housing Forecast, 2018 should mark a turning point for the nation’s longtime housing shortage.

Verify your new rate (Dec 13th, 2017)

A potential pivot

According to the forecast, supply will increase in 2018. And with that rise, we'll see "more manageable” home prices and a “modest acceleration” of sales.

How to buy a house with low income in 2017

“Realtor.com projects U.S. year-over-year inventory growth to tick up into positive territory by fall 2018, for the first time since 2015,” the forecast reports. “Inventory declines are expected to decelerate slowly throughout the year, reaching a 4 percent year-over-year decline in March before increasing in early fall, after the peak home buying months.”

Housing inventory bouncing back in key markets

The first markets to see inventory bounce-back should be Boston, Detroit, Nashville, Philadelphia and Kansas City, Missouri.

“Next year will set the stage for a significant inflection point in the housing shortage,” said Javier Vivas, Realtor.com’s director of economic research.

Facebook may help you find an affordable home

“Inventory increases will be felt in higher-priced segments after spring home buying season, which we expect to take hold and begin to provide relief for buyers and drive sales growth in 2019 and beyond.”

All in all, Realtor.com predicts 2018 will bring about a 3.2 percent jump in home prices. We should also see a 2.5 percent uptick in existing home sales, a 3 percent rise in housing starts and a whopping 7 percent increase in new home sales.

Mortgage rates should average about 4.6 percent, according to the report, and reach 5.0 percent by year’s end.

More Millennial mortgages

Realtor.com’s forecast also predicts more Millennial activity in the 2018 housing market. The segment should make up around 43 percent of all buyers by the close of 2018.

Millennials in the home-buying majority in these "quirky" towns

“Millennials are a driving force in today’s housing market,” Vivas said. “They already dominate lower price home mortgage and are getting close to overtaking older generations for mid- and upper-tier mortgages.

"While financially secure in general, their debt to income ratios have started to increase as they compete for higher priced homes.”

Surging South

Thanks to more construction starts and a boost in supply overall, 2018 will also see growth in the Southern markets.

Pros and cons of buying new construction

“Southern cities are anticipated to beat the national average in home sales growth in 2018 with Tulsa, Oklahoma; Little Rock, Arkansas; Dallas; and Charlotte, North Carolina leading the pack,” Realtor.com reports.

These Southern cities will see sales jump by 6 percent or higher, while the national growth rate will hover around 2.5 percent.

Get today’s mortgage rates

With more inventory hitting the scene, 2018 is a better time than ever to buy a home. Shop around and see what mortgage rates you qualify for today.

Verify your new rate (Dec 13th, 2017)

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

3 Testimonials

Barry L. Systems Analyst

The Mortgage Reports is an excellent resource. I depend on the Mortgage Reports for the most up-to-date information regarding shifts in government policy and mortgage rate information in general.

Michael J. Network Engineer

The Mortgage Reports is one of the most accurate, detailed, and informative sources of mortgage-related information on the internet.

Theresa D. President, Title Services

The Mortgage Reports gives me an overview of what's happening with mortgages both locally and nationally. I really enjoy it.

2017 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)