As your Fountain Hills real estate agent, I hope you had or are having a wonderful holiday season! As the end of 2017 nears, I wanted to share with you some of the real estate predictions that economic experts have made for 2018. Here are six of the major predictions that have been circulating:
1. Home prices will appreciate. Prices have been increasing for years and 2018 won’t be an exception. Prices are predicted to rise 3.2 percent next year, which is a slower increase rate than previous years. This should allow home sales to pick up as well.
2. Mortgage rates will rise. Experts predict that mortgage rates will average around 4.6 percent throughout the year, but will reach 5 percent for a 30-year fixed rate mortgage. They’ve been hovering around 4 percent for the past couple years, so this could affect affordability.
3. Existing home sales will increase. Experts predict they will rise 2.5 percent as the trend of low inventory begins to reverse itself, finally!
4. Housing starts will increase. New home sales are expected to increase even more than existing home sales. Housing starts are predicted to rise 3 percent over the year, but single-family home starts are predicted to increase 7 percent!
5. New home sales will rise. With an increase in housing starts, new home sales will increase as well, rising 7 percent year-over-year.
6. Homeownership rate will stabilize. This rate hit bottom in the second quarter of 2016 and has been rising ever since. Experts predict it will stabilize at 63.9 percent in 2018.
So, it these predictions play out in the Fountain Hills real estate market, the good news for Fountain Hills homebuyers is that inventory of new and existing homes should increase, which gives buyers more options! The bad news is that mortgage rates and home prices will rise, so they shouldn’t wait too long to buy.
Fountain Hills home sellers will have more competition, with increased inventory, but they may also sell for higher prices. Although, if fewer bidding wars occur, they may sell for less, but closer to the appraised value.
If you’d like to buy, sell or both this winter season, contact me, your Fountain Hills real estate agent! Don’t put it off! The latest Foot Traffic Report showed that buyer traffic is actually higher now than it was during the 2017 spring season and at any other time in the last five years! Buyers are out, which is great news for sellers. If you want to buy, snatch up a home before someone else does!
Have a joyous time ringing in 2018 this weekend in Fountain Hills! When ready to achieve your real estate goals in the new year, don’t hesitate to contact me. Happy New Year!