2017 Saw the number of Sales rise 4% over 2016 and a price increase of 4% Mortgage Rates will rise to somewhere right around 5% ($290,000 versus $277,000). I predict that 2018 will see prices rise another 3% and the number of sales up very slightly. 1% to 2%.
Mortgage Rates will rise to somewhere right around 5% – still historically very affordable money! Don’t worry about this affecting your sales until the rates rise above 6%.
I predict it will still be more expensive to rent than own in Northwest Atlanta. You should buy a home if you’re going to own it for four or more years and you have decent credit with 3% to 5% downpayment.
Since 2011 prices are up 45% – it has been a drama-less boom. Especially when compared to the stress of the market from 1997 to 2006 and 2006 to 2011/2012.
Don’t worry about our market collapsing. We are not out of control. Nationwide this is not a Bubble. Fewer people are upside-down, there is no junk money out there, and inventory is very, very tight. Nationwide we have the same number of homes for sale as we had in 1994 and 63,000,000 more Americans! In 2018 I predict that first-time buyers will pick up dramatically. And this will cause more trade-up sales.
New construction is up almost 10%. My prediction is that homes priced below the median price in your market will appreciate much more than the 3% predicted above.
As entry-level home prices rise and interest rates increase I’m guessing “Affordability” will grow as an issue towards the end of the year. Look for the press to catch onto this in our third quarter of 2018.
Millennials have $41,200 in Student loan debt on the average – and make $38,800. Their job advancement is slower also. Inventory for entry-level housing is extremely low. As a result, they need to hear the advantages of owning versus renting. They need to be taught about FHA and other low down-payment options. They want amenity-rich neighborhoods and complexes. Millennials buying will allow sellers to trade up; which helps the entire market.
The December 2017 tax bill will have big consequences – if your home is worth more than $1,000,000. This is because of the new lower limit on the mortgage interest deduction ($750,000 versus $1,000,000) and the reduction (to $10,000) in being able to deduct state and property taxes.