2018 real estate market predictions…
Last week, Realtor.com released an article titled “Realtor.com® 2018 National Housing Forecast” and I wanted to share how a few of these items could affect the Topeka real estate market.
- Home price appreciation – Home prices are expected to rise 3.2% next year. This is good news for home owners, your home values will increase!
- Mortgage rates – Mortgage rates are expected to average 4.6% throughout the year, but reach 5% for the 30-year fixed-rate mortgage by the end of the year. If you’re thinking about buying a home in 2018, I’d recommend doing it sooner rather than later. With rates near 4.0% right now, a 1% increase by the end of the year will increase your monthly payment and decrease the amount of home you may qualify for.
If you are thinking about selling your home in 2018, again, I’d recommend selling it sooner rather than later in the year. Higher interest rates could cause buyers to slow down their home buying search in hopes the rates will come down. When I first got into real estate in 1998, I remember 8% was the going rate! 5% will still be a great rate, but rates have been in the 3-4% for so long, some buyers will hesitate to pay the higher rate when they rise.
- Existing Home Sales – Existing home sales are forecasted to rise 2.5% as the trend in low inventory begins to reverse course. Topeka has had a bit of a housing shortage the past few year and inventory has continued to drop each year. This lack of inventory has been good for sellers that have great homes and are ready to sell them at a fair market value. There are buyers, ready to buy, just waiting for the right house to come on the market. If yours is priced fairly, it shouldn’t take long for one of these buyers to jump on it.As inventory increases, sellers will have to be more in tune with marketing their home at the right price as buyers will have more homes to choose from and sellers have more homes to compete against for the buyers eyes.
If your planning on buying or selling in 2018, make sure you are aware of the current market conditions and how they may affect your home sell or purchase. It may be better to act earlier in the year rather than later, so give Riley and I a call to discuss your plans and to help you develop the best strategy to help you with your next move!
John became a top real estate agent by using systems and setting goals. He has developed his business into a successful real estate machine. With his knowledge of technology in real estate and his patience and understanding of daily real estate issues, John is using that knowledge to provide excellent service and a high level of value to his customers and clients.