Leon Springs Community News - January 2018
2018 Housing Market – And How It Can Effect You!
2017 was a strong year for real estate: Overall prices increased by 4.1%. Days on the market decreased by 1.4%, overall sales contracts increased by 3.1% and closed sales increased 2.5%.
And this is where I pull out my Magic 8-ball! I believe that real estate investment is still a good bet for 2018.
Prices will rise, but at a slower growth rate. So, unless you get over-leveraged, long term real estate investment is still safe. This should increase supply, though I expect total supply will still be short of demand.
Millennials need homes for their families! Kids change everything! More Millennial buyers means that entry-level housing prices will rise short-term. Rising prices should attract development – development increases supply – and stabilizes prices.
Rentals and Flips are still an excellent return on investment! And, it’s been more than seven years since the recession – meaning that buyers who filed bankruptcy years ago are able to enter the buying market again.
Let’s face facts. The new tax bill is kinder to Texas than it is to California. With the overall economy improving, national outlooks include: housing starts up 3%, new home sales up 7%, existing home sales up 2.5%. The American Dream of owning your own home won’t be dampened because the standard deduction doubling reduces tax incentives for low and middle income buyers. Tax incentives are never the MAIN reason for someone to buy a home!
If interest rates rise slightly, increasing supply and slowing price appreciation, first-time buyers, who have more money in their pockets, will have the opportunity to become a homeowner.
Gina M. Sohmer, is a veteran, a 2nd-Generation REALTOR®, a Graduate of the REALTOR® Institute, a Seller’s Representative Specialist, and a member of the Phyllis Browning Company. She can be reached at www.ginasohmerrealestate.com.