If you are considering selling a property this year, the chances are that you have taken some time to weigh up the current housing market. While not everything appears to be as simple as it is on the surface, there are certainly a number of encouraging signs which could influence many home-owners.
The good news is that – with prices, wages, employment, and GDP looking positive in the US and Canada – the indication is that there may be some strength coming into the housing market. From real estate in Toronto to the continuing trend of western migration, this year could be the start of a significant resurgence in more buyers and sellers deciding to enter the market.
The US market is certainly set for a big year, which may come as some surprise to a number of those who believe the recent stock market correction to be ominous. There is considerable belief that the Texas and Michigan markets will experience good growth in 2018, with other areas also set to enjoy some good times. This is down to the economy enjoying a boost from lower taxes and positive trade agreements.
What does this mean for house sales?
It seems that inventory will be the most important contributing factor when it comes to the 2018 housing market in the US. Much like 2016 and 2017, there has been a significant shortage in inventory across the nation, which many believe will increase prices and affect sales.
Houses will sell faster, with less of them on the market, and this can also lead to an increased speed of sale when it comes to homes. This can be somewhat relieved by President Trump’s policies, which will hopefully spur on house builders to produce a high number of entry-level properties in 2018.
“Mortgage rates will follow a similar path, increasing to 4.5 percent in 2018 from 4.0 percent in 2017. We estimate that mortgage rates will reach the 5.0 percent level by the middle of 2018, but rising only slightly beyond that to average 5.3 percent in 2020,” said MBA economists Lynn Fisher, Mike Fratantoni and Joel Kan (via Washington Post).
“Our forecast for 2018 is that we will see continued growth in purchase originations, as we expect around 7 percent growth for the year, followed by 5 percent in each of 2019 and 2020, as purchase originations continue to exceed the [$1 trillion] mark in each of these years.
“Sustained strength in the economy, a tight job market, and a high likelihood of growth in household formation continue to support this forecast. Refinance activity will continue to decrease as rates increase, decreasing 29 percent in 2018 and another 7 percent in 2019.”
There is growing optimism that we will see some improvements this year, with many agreeing that the foundations have been laid for a recovery. Whether this is enough to convince you that a house sale is the right thing will still come down to your own judgment.