For most of the country, the real estate market stood strong in 2017. As we enter a new year, the market is expected to remain the same and plenty of people are excited about it. This being said, some housing markets are getting more expensive and many people are having trouble finding a home within their price range. If you are considering buying a home within the next year, you need to be prepared for competition from other buyers. The knowledge of next year’s real estate trends can give you a leg up on out-bidding your competitors.
Lack of Inventory
One of the main causes for an increase in real estate prices is a lack of inventory. There are simply not enough homes for the number of interested buyers in the market. Home builders are not building more homes for several reasons. First, many home builders are still recovering and scarred from the last housing crash. They fear if they build too many homes, their company funds will be exhausted.
In addition, there is a massive shortage of construction workers in many parts of the country. It comes down to the fact that people are not willing to work in the construction field for the low compensation being offered. Until this issue is resolved, it is expected that the housing shortage will continue. As a result, most real estate experts believe that limited inventory will help increase housing prices in 2018.
Buying a home is one of the most important financial decisions in someone’s life. With higher demand and limited inventory, potential buyers should expect higher real estate prices next year.
There are areas of the country where ordinary buyers simply cannot afford to purchase a new home. This is an issue for several reasons. Many buyers are moving to areas where the cost of living is much less expensive. This is one of the reasons why states like Illinois have had to deal with a reduced population over the past few years.
Another important trend in real estate is the willingness of homeowners to invest in home improvement. Plenty of homeowners are comfortable spending money on projects because they have equity in their homes. Anyone who purchased a home several years ago should have some amount of equity on their property.
The real estate market should continue to experience pricing gains in the years ahead. This is great news for anyone who already owns a home.