Our
efforts to plan for 2018 have already started. We’ve initiated our class
schedules, created a website, and started marketing our Home Loan Workshop. We continue
to reach out to our client base and our real estate partners. All these
efforts will pay dividends 4 - 6 months from now. We do not put too much
emphasis on what the future will provide, but we do try to base our strategies
and marketing on the trends. Rentals, for instance, are at an all-time
high and rental rates are as well. We feel this will force some folks
that otherwise would comfortably stay in their rental to look at buying a
home. We are sending 2,500 full page mailers to high rent tenants in the
area by the end of the year.
1. Inventory shortages will drive the housing market. There are 12
percent fewer homes to choose from nationwide than there were a year ago,
and 51 percent of for-sale properties are in the top one-third of home values,
which are out of reach for first-time buyers.
2. Builders will turn their focus to entry-level homes. Housing starts have been
well below the 50-year average of 1.2 million, builders are expected to finally
hearken to the call of first-time and lower- to middle-income buyers yearning
for more affordable options.
3. New homes will lead the pack for growth. Experts predict that new
home starts and sales will increase 7% over 2017
4. Millennials will move to the suburbs. Although most millennials
would prefer to live in urban areas, they can’t afford to live in these
areas. 25- to 34-year-olds will begin moving to the ‘burbs in search of
more affordable home prices.
5. Many homeowners will remodel rather than sell. Low inventories will force
many homeowners, despite having high confidence about being in a seller’s
market, to stay put. Homeowners will invest in their existing home to make it
feel new.
6. Homes prices will continue to grow, but at a slower pace. 2017 has been full of
record-breaking home price growth, with economists calling it nearly unstoppable.
Home prices are expected to climb 4.1 percent in 2018 —
1.1 percentage points higher than the “normal” annual appreciation closer of 3
percent, but slower than the
current annual pace of 6.9 percent.
7. Rates will continue to rise, but at a slower pace. Here’s an interesting
fact: rates are actually lower in December of 2017 than they were in December
of 2016! You wouldn’t hear this from the main stream media. The
Mortgage Bankers Association expects rates to be at about .375% - .75% from where
they are right now – CLICK
HERE for article. The nice thing about rates is that they are usually
in balance with the economy. Where, if the economy is doing well, rates
will be higher. If there are more people with jobs and disposable income,
there will be more homes sold.
We would love to hear your predications. We would also
welcome the opportunity to show you what The Easterbrook Team
can do to help make your 2018 your best year ever.
