Let’s take a look at what’s been going on lately in our real estate market.
Since the end of 2017, new home sales are at the highest level we’ve seen in a decade.
Additionally, sales of previously owned homes are at the highest level in even longer than a decade, and starts of single-family home construction are the strongest they’ve been in 10 years, as well. Also, applications to build such properties have also advanced to the fastest pace since August of 2007.
As for mortgage rates, they are projected to rise at the end of the year to around 4.5%.
There are also projections right now for rises in home sales and buyer traffic.
According to Bloomberg Business, “America’s housing market is gearing up for a robust year ahead. Builders are more optimistic, demand is strong, and lean inventory is keeping prices elevated.”
But, what about the new tax code? Well, it doesn’t sound like it’s going to be all that bad. At least 57% of consumers believe that the tax bill is not likely to have any impact at all on their home sale this year. Some consumers even believe they may sell faster.
As for buyers, 29.% think they will be able to purchase more quickly, while 22% believe there will be no impact.
Home prices are another area of interest. “This escalation in home prices reflects both the acute lack of supply and the strengthening economy,” said CoreLogic’s chief economist Dr. Frank Nothaft.
Also, Lawrence Yun, the National Association of Realtors’ chief economist, has said that “The healthy labor market and higher wage gains are expected to further strengthen buyer demand for young adults next year.”
So due to our current low supply in combination with current appreciation rates, right now is a great time to sell or buy. In $50,000 to $500,000 range, there is an absorption rate between one and three months.
Of course, on top of bringing you the latest information from our market, I am also always seeking out ways to become the best real estate professional I can be. This is one reason for my recent trip to Jamaica, where I spent time at a mastermind learning top tricks and ideas for helping people to buy and sell.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.