As it always does, the real estate industry is dependent upon the economic standing of an area. Since the recession has receded, the real estate industry has taken off again and the market has improved. The real estate developments of the last few years are continuing and expected to grow into 2018.
Here are some of the real estate trends that we can expect to see in 2018:
Rising Real Estate Prices
Since the real estate industry has been so successful in recent years, we can expect to see a 3%-5% rise in prices going into the New Year according to the Home Buying Institute (HBI). This is going to force buyers to really consider their housing budget and potentially reassess their expectations and reduce their search parameters. Though this trend may impact some buyer’s dream home purchases, it is an anticipated 2018 trend as it always is when the market is recovering from a recession.
Hot Market Continues
In 2018 we are expecting the market to continue being so successful on the selling side that supply will not match demand. This trend will be as a result of boomerang buyers who have recovered from the recession and are ready to reenter the market. As this happens, the supply of houses will not match the growing number of buyers in demand. Thus, buyer competition will ensue as the market cannot currently sustain the number of interested buyers.
Reduced Living Sizes
Smaller or mini homes are a trend that really took off in recent years and will continue on into 2018 with gusto. More people are realizing that they don’t need as much space and are downsizing while others who don’t have a place to sleep can finally afford their own home. Mini homes have reduced the size of living but have become a highly sought after way of living. Not only does this trend save buyers money, but it offers affordable housing for those who are struggling.