The market of the real estate is full of ups and downs. The demand for homes for buying or renting is never balanced out. The real estate market trends for the year 2018 should be carefully followed by sellers and buyers. Understanding them will help the investors to assess the market fluctuations closely.
More homes for sale: New generation buyers: individuals with new jobs and that are planning to start a family are likely to buy homes in urban areas, whereas millennials near to retirement ages are likely to abandon their luxury condos and start looking for homes in suburban areas for the peaceful life.
Rise in mortgage rates: It is expected that the year of 2018 will notice the peak rates in the mortgage. While interest rates prediction is not accurate, mortgage rate will steadily increase throughout the year.
Increase in sellers: Due to new tax reforms and changes in housing policies, the year of 2018 can expect an increase in the sale of houses which will lead to more affordable homes for the buyers. Home buyers should, therefore, be ready for the market with aggressive competition.
Latest technology: The advent of technology has clearly affected real estate industry. Buyers and sellers are now going online or using apps to get real estate information. Virtual reality is giving the buyers a good tour of the home or property they are interested in. Sellers and buyers are trying digital options in the real market to save money and time.
Ease of loans: Obtaining bank loans in 2018 is relatively easy as banks are pursuing the buyers aggressively with various loan schemes. The owners who are buying homes for investment purpose will benefit at large with these loan options.
Rental market: A boom is expected in the rental market sector with many of the families opting for short-term rentals. The real estate market will see a rise in renting vacation homes and single bedroom flats. Competition for micro-unit living spaces in urban areas will gradually increase. This trend is expected to continue for the next decade.
Positive living spaces: Buyers and renters are likely to focus on flexible living spaces with a clean environment. Homes with better security and with the best accessibility to home needs are given top priority. Urbanization still remains a key factor for the growth of real estate business.
Low inventory: The demand for homes does not meet the supply of the buyers. 2018 will experience the shortage of inventory. The unstable market situations over the past year are the reason for this shortage.
The rise in construction: With increased demand for homes in urban areas, real estate developers are likely to start new construction ventures. Prices for new homes increase and lenders are willing to invest money in loan-approving automation process.
Renovation over buying: The present homeowners are likely to choose home renovation than buying new homes with changes in tax reforms and increasing prices. Upgradation of homes is better for owners than paying lump sum money for stamp duty.