These Five Trends Will Shape the Housing Market in 2018

The United States economy is expected to hit an escape velocity by the year 2018. They are also expecting the real estate industry to serve as its main fuel. Housing is also expected to compose more than 15 percent of the country’s GDP. However, it has not yet reached its high-end expectations of late. That is because lending standards have remained tight in the rise of the real estate market while the cautious real estate developers who survived the 2008 crisis have been reluctant in diving into the real estate operations to have it expanded again.

However, many signs are coming up to show that the trend is expected to change. Let’s look at the expected trends below. Click here for more information.

1. The rising rates

The Federal Reserve raised the real estate interest rates for the second time since 2006. This is a clear sign of the changing real estate trends. The majority of the real estate Federal Reserve Commission also expect three more increases by the end of 2017 mortgage rates are also expected to rise by the wave of this decisions to make it even difficult for new home-buyers to purchase new homes for themselves. As a matter of fact, these rates have started taking effect in the industry.

2. More credit

According to Richard Redfin, the mortgage rates will rise in 2018. While they continue to rise, the mortgage credit will be more available due to the expected loos lending standards. The Federal Housing Commission will lower their fees for the first-time buyers. This is a trend that continues from the Obama rule that saw the fees lowered in 2015.

Moreover, government-owned mortgage companies will pack larger mortgages for over a decade to make it easier for expensive market buyers finance their purchases.

3. More new homes

According to the recent data in the real estate industry, more new homes will be constructed to pull on new projects by the end of the year. The overall trend in construction is expected to be positive. There is also an average annual rate of over $1.6 million by the end of 2016. They also rose up to 8 percent up from 5 percent in 2015.

The trend is also expected to continue to 2018. This is because home-builders are encouraged by the lower credit, the higher wages, and the increased demand.

4. The continued rise of medium-sized cities

The current economic recovery is expected to dominate in cities like Seattle, New York, and San Francisco. Property values in this location are also rising significantly. However, these trends are staining the real estate trends because new construction is unable to keep up with the rising demand for real estate development. This is because young people are going to the medium-sized cities.

5. Foreign buyers are not going away

The influx of foreign buyers in the country is keeping up with the increased trend in cities like New York and Los Angeles. Buyers from China are looking for safe places to store their wealth in the United States. Foreign capital from Europe is also flowing into the country.


Leave a Reply

Your email address will not be published. Required fields are marked *