Real Estate Market Trends

The real estate market has been taking a turn for the better as we’ve entered the year 2018. This trend seems to be continuing to hold strong. So what does that mean for you and your real estate plans for this year? Let’s take a look into the predicted 2018 real estate trends and how this will impact the market.

The Economy

With our economy seeming to be on a sturdy ground again since the recession, experts don’t see the economy going back anytime soon. They believe that this building momentum will continue to carry upwards, which means the real estate market will most likely follow suit. A big factor can be attributed to the large millennial generation that is getting to the point of getting out into the real world and helping boost our economy with jobs. With millennials reaching this point in their lives, it’s likely most of them are looking to make moves in the real estate market.

Demographic

Like stated above, millennials are a key factor in helping our growing economy. Just last year, Millennials represented nearly 2 million sales in 2015, which is one-third of home buyers. Realtor Magazine predicts that millennials are expected to be first-time home buyers next year and continue to be major buyers in 2016. Millennials aren’t the only key factor though. We’re at a point in time where GenXers are financially recovering and Baby Boomers are getting to the point in their lives of retirement. With the genXers reaching their prime in salary, this means they’re looking to upgrade and relocate. While on the flip side, baby boomers are looking to downsize and find something a little more affordable and sensible. They play a double role, selling their current homes and buying new ones to better suit their lifestyle.

Mortgage Rates

According to Yahoo Finance, mortgage rates have hit a new low for the year last week and rates on a 30-year fixed mortgage are at the lowest mark since May 2013. With rates this low, now is the perfect time to buy. From a recent mortgage market survey, Freddie Mac has reported that the average for a 30-year fixed rate mortgage averaged to about 3.58%, where the 15-year fixed mortgage rate averaged to be bout 2.86%. For those looking to become home owners, this seems to be the time you’re going to want to jump with these low rates. The future is never certain, but experts are predicting an increase in these rates by the end of the year.

Low Inventory

Another trend that’s been quite apparent in 2016 is the lack of homes up for sale. With supply being so low, demand is currently through the roof. Real estate agents claim that houses are being sold within weeks with multiple offers made. The competition is fierce and this is great for the real estate market. With the combination of low inventory and high demand, this means that house prices are sky high. Majority of houses are being sold over asking price because of this equation. San Francisco Chronicles claim that, “Local home buyers paid an average 7.1% above asking price in April, a record according to the California Association of Realtors.” If this concerns potential buyers about the high prices, remember the mortgage rates are at an all-time low currently and help balance out this factor.

As always, Lopez Real Estate stays ahead of the news and catches on to the current trends first. We use this knowledge to find the best solutions for you and your family, whether you’re a first-time homebuyer, looking to relocate, or even looking to downsize. We have something for everyone and go above and beyond to provide our clients with only the best. Contact us today to see what we can do for you!