At the end of 2017, the US economy was beginning to shift into high gear even as home buyers were working to get a good deal before interest rates spike. Things can only get more interesting as 2018 progresses. But what should the sellers, buyers, and industry professionals expect? The following are some of the expert-recommended real estate trends for 2018:
Data from Wells Fargo put the average 30-year fixed mortgage rate at 4.0 percent. As the U.S. economy expands and the Federal Reserve fights to put a check on inflation, that figure can also go up. Some experts are of the view that the interest rates will rise by between 0.25 percent and 0.50 percent. The Federal Reserve is unlikely to allow the interest rates to go up higher than that. After all, they have the power to step in, buy up mortgages and get the rates under control by buying them. Interesting one post 5 First-Time Home Buying Tips
Banks to Be More Aggressive About Mortgages
Do you intend to buy a home as an investment? Well, expect more financing opportunities in 2018 due to the banks going out aggressively in pursuit of the buyers. For a number of years, banks haven’t been lending that much. Now, things are beginning to look up. That can be seen through the number of loan products on offer from the banks. The result of this is that many more buyers are jumping on the real estate bandwagon. In 2018, things can only get better.
More Home Sales in the High-Tax States
Recently, the federal government enacted the tax reform bill which is expected to make things better for homeowners in New York, California, and other high-tax states. The new law limits to $10,000 the local and state mortgage taxes. Buyers in these states are likely to go for second homes. Many of these markets are likely to experience an increase in home listings. What you can expect are prices that are leveled and affordable for homeowners.
Increasing Number of Vacation Homebuyers
The tax reform bill is expected to leave wealthy Americans with a lot of cash in their pockets. Many of them are expected to invest in vacation homes. Why shouldn’t they buy when they can afford them? After all, they pay in cash. That means they are not affected by rising interest rates. Much of the new home purchases will ride on the rising optimism in the real estate sector.
The Rise of a Market Free Of Agents
Time has come for real estate sellers and buyers to adapt tech-oriented solutions. There is need to save on the millions of money spent hiring agents. One such solution is OpenDoor.com, which is linking buyers to sellers without going through the agents. But that is not the only one making an effort. Other start-ups have also come up. These apps will definitely cost you up to 6 percent of the total sale value like the agents do. 5 Tips to Sell Your Home Fast
The real estate market has never looked as optimistic as it is in 2018. Activity in this sector can only go higher.