To buy or sell in 2018?
The 2018 US real estate market is looking positive for sellers, but home buyers and investors will need to strategize a little to find worthwhile homes for sale. Labor shortages and higher lumber costs could mean fewer resale houses for sale, and thus rising home prices. In spite of this, however, buyers will continue to snatch up homes due to stable mortgage rates, and a healthy economy.
General outlook for 2018
Despite talks of housing bubbles, expert forecasts of markets like Los Angeles, San Diego, and New York are promising. Freddie Mac’s 2018 forecast predicts a strong year ahead with a solid 5% growth in prices. For several years, the US has seen moderate economic growth of about 2% annually, job gains, and low mortgage interest rates, and these conditions are predicted to continue into 2018.
2018: What cities to invest in
When deciding where to invest or buy a home, it can get overwhelming trying to assess which cities offer the best outlook on jobs, taxes, regulations, business, and larger millennial populations.
- San Francisco continues on at the top of the hot investment city list. Reports on job and income growth in the Bay area look excellent. It’s hard not to cast San Diego and Los Angeles in just as rosy a light leading into 2020. The main challenge remains finding willing sellers!
- The Boston housing market is back on track and looking good for 2018. Prices have been rising fast since 2013, and the trend looks the same for the next year. A large, accumulated demand from buyers, an abundance of foreign investors, and low interest rates mean the economy is strong, as is the inventory of homes for sale.
- Price appreciation in Miami’s real estate market isn’t over. House prices have grown 7%, and it looks like a buyers market for condos in Miami Dade County. As well, rental prices have been falling, so investors will have to look harder to find high performing properties.
- In spite of ample talk of a real estate market crash in New York, it’s not happening. Prices in Manhattan, Brooklyn, and Queens have continued to rise slowly, likely because housing availability is weak. NAR chief economist Lawrence Yun says younger buyers are likely to drive growth in residential markets in coming years as interest rates stay relatively low.