In many ways, 2017 has been a difficult year for homeowners and first-time home buyers. Available houses became scarce and prices soared to highs. For 2018, however, you will have a cause to hope — although challenges will still be present.
Before you visit a mortgage company, Altius Mortgage Group recommends to first understand what the new year may likely have in store for mortgage-takers and home buyers:
Supple Finally Meets Demand
One good reason you can hope for a better year (in terms of real estate) lies in the increasing availability of housing. Housing supply will finally pull alongside the high demand. Economics experts of a real estate website believe that the supply of houses will increase during the second half of 2018, spurred on by new home constructions.
Prices Slow Down
Another reason to rejoice lies in the prices of homes. Industry and lender groups forecast that home prices will only increase by 4.1% next year. This slowdown in price increase stems from the new home constructions previously mentioned. With more supply to meet the demand, as basic economics dictate, prices will go down, allowing you to afford great homes.
Better Chances for Millennials
This 2018 may be considered as the year of Millennials, as far as real estate is concerned. Although the younger generation thinks that life is harder on them than their predecessors, 2018 will see to the rectification of that disconnect. With a strong economy and great individual career development, millennial incomes grow, giving Millennials a chance to take out loans easily.
Mortgage Rates May Rise or Not
Of course, 2018 has its fair share of challenges, including the continuing rise of mortgage rates. A real estate industry data provider pooled together different forecasts and concluded that by the end of next year, 30-year mortgages will reach 4.7%. Hope still abounds, however, since mortgages can be unpredictable. They may just drop when we least expect them to.
With all of this news, you may already be looking forward to seeing them become reality. Hope with everything you have for a great year in housing.