The end of the year is just around the corner, and that means another year of real estate is in the books. What’s happened since the beginning of the year? Where will the market go as we head into 2018? Let’s take a moment to recap this year’s developments and consider what could change next year.
In many major housing markets across the country, sales continue to be brisk, and buyers face substantial competition for homes. While new construction continued to remain relatively steady, tight inventory in growing communities has remained the dominant trend throughout the year. For now, we can probably expect this trend to continue. A seller’s market will persist in many areas.
Though new construction slipped in some months of the year, the overall trend has been to keep pace with last year’s numbers. As demand for housing remains high, new communities continue to develop. This development represents many prime opportunities for investment and new families to find a safe place to settle down. Construction may continue to slip into next year as some areas reach saturation.
Speaking of new families, we can expect that more young people will enter the market next year. As the economy continues to improve and those born in the late 80s and early 90s find more steady income, buying a house becomes a realistic possibility. This factor could contribute to continued low inventory. However, millennials also continue to flock to places with lower costs of living, such as the Midwest, creating new opportunities and communities. While it’s hard to predict factors like interest rates and other market conditions, 2018 looks to offer the chance for continued growth and recovery in the post-housing bubble world.