Buyers… or sellers?! Here’s what 2018 will bring!

Just as 2017, sellers were the kings of the Real Estate market, but will they keep their crown all the way into 2018? The answer is… most likely!

So many things have changed in 2017, from pricing to a new tax bill, and all of this will come part of the equation for 2018, but you might be wondering, why? Why are sellers still the kings of the market? Basically this question has a few different answers, which individually add up to the big picture which always turns out to be that if you’re looking to sell your house, you are one of the lucky ones! But enough of teasing, let’s count them up!

Number 1: Inventory!

There’s a big issue in the Real Estate market if you are part of the buyer’s team, and the issue has been in the business for quite some time now, which is low inventories of properties, this translates to the fact that there are less houses being built which means that those who would purchase those new houses are not and instead holding in into their home for a while. This type of situation doesn’t really help the market as the sellers are the ones calling the shots on how this market will move and at what pace, and not only that, this increases competition which in all honesty is the best thing to happen, now you may be wondering why? Because in a situation like this, the ones who do the right connections and the right deals will keep on cashing in from them in the future! It’s the best times to find the right buyers for your deals!

The decline in inventory continues and is only going to go lower and lower, as it’s now around 1.2 million units, which is still quite low from the 1.5 million average rate, but hey, we might get it this year!

Number 2: Pricing!

Here’s the thing, since the inventory is so low, as seen in the previous number, pricing is all over the place and only rising on top of everything else, which means if you buy a house now, the market value of it might rise by summer of this year, and if you are a Real Estate investor, this is AMAZING news, because while yes you are buying expensive houses, you are also going to be selling expensive houses to very hungry buyers, since there’s not much else going on into the market itself. Around November of 2017, Realtor.com shared some good insight on pricing for the properties this year, and there’s going to be a big growth in the Texas market as well as the Florida one! But at a national level as well, the growth is around 3.8%, which can mean a lot in this market! If you want to read more into detail about this, go here!

Number 3: Mortgage?!

For some lucky investors, mortgages are the last thing in their concerns, but for the end-buyer this is a key part of their Real Estate adventure, since they do rely heavily on the rate in which it can stay through the year, this idea could either encourage or persuade them into not purchasing a new house this year, either way, for the investor this is amazing! When there’s less competition in the market is when it thrives the best for those who want to invest and do it fast, in which case yes, this is still a sellers’ market but you will have a far better chance to get that hot deal if you come in with a full cash offer! Once again, do check out the Realtor.com forecast, as it does say that for this year it will hold its 4.5% but it might go onto a 5% by the end of it, although with this new tax bill, it might also change!This whole thing is the best situation for the seller because it will make the process of selling their house that much quicker!

Is you want some help with the tax bill, here are some good old tax deductions you will be able to make this year! 

So here are some of our predictions and guide for this new year, but of course, do let us know what you think about them in the comments, we would love to check it out!