|2018 Real Estate Predictions|
1. Inventory shortages will drive the housing market. Low inventory will continue to push up home prices and serve as a barrier for first-time home buyers who struggle to save for a down payment.
2. Builders will turn their focus to entry-level homes. Economists have said over and over again that increased residential housing starts, especially at the starter home level, are the key to bringing home prices down.
3. Millennials will move to the suburbs. It’s no secret that the majority of millennials would rather live in urban centers with access to a plethora of entertainment and shopping options and robust tech-centered job opportunities.
4. Many homeowners will remodel rather than sell. In addition to higher housing starts, experts have said more homeowners selling their homes would help alleviate low inventory issues.
5. 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.”