SPOTTLIGHT — Happy New Year!

December 30, 2017

By Toni Spott

Toni Spott

I hope that your New Year went well and that you are feeling fresh and ready to tackle another year.

I’ve done a bit of research to see what the experts are saying about the 2018 housing market and here are my findings.

Real estate experts are predicting:

1. Millennials will be the biggest pool of buyers for 2018. They have good jobs, have socked away a good amount of savings, and they are ready to buy. Other first time homebuyers will also be looking for homes.

2. Mortgage rates have gone up a bit to a projected 4.15 percent on a 30-year fixed rate mortgage. This is up from near record lows in 2016. These are still amazingly low interest rates.

3. experts are still uncertain of what the impact will be from the tax reform legislation passed by Congress.

4. Home prices are expected to rise 3.2 percent, which will accelerate home sales because more people will put their home on the market.

5. For several years, there has been moderate economic growth of about two percent a year, solid job gains, and low mortgage interest rates and this trend will continue in 2018.

6. New home construction is expected to be the primary driver of sales in 2018. Bay View may possibly see some new home construction at the old Army Reserve site.

7. 2018 housing sales are projected to outpace 2017 sales by 2.5 percent to 3.7 percent. There will still be a short supply of homes but it seems that it will loosen up a bit as the as new homes come on the market.

By now most buyers are completely aware that there aren’t enough homes for sale here, or anywhere, for that matter. Therefore it’s pretty competitive out there with regard to finding a home.

Bay View saw some great increases in the number of home sales in 2017, and if there is a rise in listings as predicted in 2018, then again Bay View will have another outstanding year. Rates are still very low. The only bump in the road that I can see would be the effect of tax reform legislation.

Responses to the Department of City Development’s request for proposals for new home construction in Bay View at the former Army Reserve site are due at the end of March 2018. The proposal calls for 14 single-family homes to be built along South Logan Avenue, on the west side of the site. It stipulates that the houses should have a minimum of three bedrooms and 1.5 bathrooms and with 1.5 to 2 stories. To some, 14 new homes may not seem like a lot but at this point, let’s take what we can get. It’s a good place to start.

Ranch-style homes are in high demand. One of the reasons boomers are not moving from their current homes is because they are looking for stairway-less homes, like a ranch. There is a shortage of homes for sale on the market, in general, but there are even fewer ranch-style homes, in particular.

So with all of these great predictions for the coming year, I want to wish you all a prosperous and Happy New Year!

Toni Spott Sustainable Agent, Keller Williams Realty;
or Facebook: TheToniSpottTeam;

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