Keeping an eye on the ever changing real estate market is a must if you want to stay current. We have seen quite a few changes in trends in 2017, and some are bound to continue during the better half of 2018. In countries like Australia and the US with large real estate markets there are a lot of factors that can contribute to both changes and stagnations.
Within this article you will discover what are the novelties that await us and what are the constants we can count on when it comes to the real estate market.
The continual growth in house prices
In 2017 we have seen a substantial growth in house prices. Experts predict that while it might slow down a bit but is sure to pick up after a few months. 2017 has seen an increase of up to 13% both in Australia and the US. The price rise is being driven by stable economic situation, lower interest rates and lower unemployment rate, so if these factors stay stable through 2018, we can expect to see a lot more housing prices growth by the end of the year. This should not be discouraging, it is a good prediction for the overall state of the country.
Construction is not about to slow down
This is great news for a lot of contactors, while the Millennials are deciding more and more on home buying rather than renting. We can expect to see an increased need for construction bonds in several key US states where the Millennials are driving the economic growth of the construction industry. This is one of the great things that awaits us in 2018. More work for the construction industry, more stability and above all huge benefits for the local economy. Let’s not forget that there is a steady trend of construction upgrades and renovations. People are deciding on staying put to avoid relocation costs and paperwork. This is also one of the major trends that will benefit the construction industry.
Mortgages are bound to increase a little
This is great news for a lot of new homeowners in 2018. In US it is predicted that the mortgage rates will linger around 4% by the end the year. This is a bit higher than what we have seen in 2017, but still historically low. We can see something similar in Australia, where the rates are under 4% are expected to rise slightly by the end of the year. This prediction won’t inspire a lot of change on the real estate market, but it certainly presents good news for homeowners in both countries.
The number of homeowners is bound to increase
As we have mentioned previously, Millennials are all about owning a home and not renting one. This will be quite visible in the real estate trends of 2018. In Australia, the biggest issue will pose the increased deposit burden for first home buyers. However after that obstacle is tackled, the low interest rates make it quite possible to pay off a home within a reasonable number of years.
In the US the situation is slightly different, although there is clear desire for home ownership, high rents and student debt loads are making it harder for young Americans to complete sufficient deposit funds to start paying off their home.
Some see it as the years for selling
A substantial number of future home sellers are counting on better sales conditions in 2018. Most of them are looking to leave the natural disaster areas that have been severely affected in 2018. This could lead to a sort of migration to more secure parts of country that are deemed safe and unexposed to nature’s harshness.
So there you have it, so far so good. Most of the changes that we are expecting in the real estate market are positive. As it seems 2018 is shaping to be a good years for both current and future homeowners, as well as for the construction industry. And if everything stays on course we are looking at one prosperous real estate year.