Luxe Realty Group
Five Predictions for the Real Estate Market for the Remainder of 2018
Home ownership, once a staple of the “American Dream” has hit a resurgence the past several years. Favorable market conditions, such as low interest rates, increased housing starts and a generally strong economy have spurred robust interest in the real estate market. As we continue into 2018, forecasters point to several factors which may negatively impact decision-making. Most recently, fluctuations in the stock market, signs of higher interest rates, along with a change to the allowable mortgage interest deduction, could all play a significant role.
The market throughout the Pacific Northwest, specifically the Portland, Oregon region, has been extremely active in the last few years. Unfortunately, that growth is expected to slow in 2018, down 3-5%. Much will be dependent on affordability of a neighborhood and some are showing lower appreciation growth than in previous years. Factors predicted to affect Portland home buyers and sellers are low inventory, slow economic growth and rising mortgage rates. In other areas, such as the resort town of Bend, located in Central Oregon, brokerage firms such as Cascade Sotheby’s International Realty, have experienced record growth. In fact, as part of their expansion strategy, the firm has concentrated efforts throughout Portland, the Oregon Coast and SW Washington.
Take a look at several possible scenarios that could have consequence on the market.
1) Affordability pressure plagues slower market growth. Available inventory of homes, actually considered affordable on a median income, has been in steady decline. Experts predict that inventory will recover slightly, up 1.7% year over year, after falling about 3.4% in 2016. Predictions also suggest that median home sale prices will increase 5.3% year over year while existing home sales are forecast to increase 2.8% in 2018.
2) The average number of days a home spends on the market will be the lowest on record. In 2016, the average home spent only 52 days on the market, the shortest since 2009. Due to low home inventory over the last several years, in particular, with entry level homes in certain markets, homes have had offers within only 6 days of being listed. In addition, transactions have become less time consuming and drastically more efficient due to new technologies, resulting in making the home buying process easier.
3) Anticipate a minimal increase in mortgage rates. Industry experts predict that 30-year-fixed mortgage rates will rise to 4.3% next year. The 30-year-fixed mortgage rate has already increased from 3.5% at the end of 2017 to just above 4%. Wall Street’s optimism is said to be in response to the economic proposals from the White House and the Federal Reserve’s interest rate hike earlier this year.
4) Everyone can get a home loan – for now. A positive credit score will go a long way in this market. Some financial institutions have introduced mortgage down payments of as little as 1-3% of the home’s purchase price. However, an immaculate credit history is often necessary to be eligible. Last year, government-sponsored Fannie Mae and Freddie Mac awarded considerable larger mortgages for the first time since the 2006 financial crisis. In fact, loan limits saw an increase from $417,000 to $424,1000 in many regions.
5) There’s still an ongoing housing shortage in many regions. It’s no secret that in 2018 there is a serious shortage of affordable housing across the entire country. It’s a combination of construction slow-downs, mortgage rate increases, and so much more. Little is predicted to change in the near future. Population growth has dramatically outpaced new construction and the industry is having difficulty in keeping up with demand. Ironic, considering new home building remains has encountered a slowdown.
What does this all equate to when influencing our decision-making regarding the market? Mortgage rates should remain for the immediate future and continue to promote confidence in the home buying sector. The advice of most industry professionals, though, is to act now, to capitalize on advantageous conditions before inevitable changes in the market climate begins to take effect.
Recently Sold Listings | Luxe Realty Group
4808 WILLAMETTE DR- VANCOUVER
Courtesy of Cascade Sothebys International Realty
SOLD AT $660,000
4,105 SQ FT | 5 BEDS | 4 BATHS
Southcliff home on a 1/2-acre lot with ADU/guest house with its own driveway or divide lots and build new home on additional lot. This 5+ bedroom home/4 bath with midcentury flair has been full of fun. Double lot (.25 each), fenced property with large pool, hot tub and new covered area. Paint, roof, electrical panel and addition 4 years ago. You have to come see for yourself!
MORE SOLD LISTINGS
Local Living | Explore Vancouver with Marci Caputo
ONE THING THAT MAKES YOU
…the sense of community and the small town feel even as it continues to grow!
AN EVENT OR PLACE MOST
PEOPLE DON’T KNOW ABOUT
Vancouver’s Night Market brings local vibrancy and handmade goods to downtown, you don’t want to miss it!
A walk-through Officers Row, over the land bridge to the waterfront is the perfect way to enjoy a sunny day in Vancouver.
YOUR VERY OWN
“Together is my Favorite Place to Be” is one of my favorite sayings and stands true whether I am at home, a local restaurant or enjoying the outdoors in Vancouver as long as I am with family and friends.
Choosing the best is tough as there are so many wonderful places to eat in town. One I love is Duck Tales. It is walkable from my house, serves excellent from scratch food, kids can eat off the happy hour menu, and has the history of the “Waddles” tradition behind it.
How Do You Define Home?
Work with your family? You could call us crazy, however we wouldn’t have it any other way.
Years ago, Marci took her entrepreneurial spirit and passion for helping others and decided to start a fulfilling career in real estate. As kindred spirts often do, it did not take long for Brandy to follow in Marci’s path. A true passion for helping and connecting with people, being raised with the same relentless work ethic, and sharing the same optimistic excitement for life are just a few things that contribute to our perfect partnership.
Coming from the same large family that is deeply rooted in a small community, we were raised to treat everyone we meet like they’re our own. How lucky are we to be born and raised in a place where people genuinely care about one another? A place that you can be yourself, where you can walk down the street to be greeted by someone who genuinely cares. A place that simply feels like home. Although we grew up in separate generations, we still have the same feeling when walking the streets of Ridgefield. We. Are. Home. Family and that sense of home is something that is engrained in us. That mentality has stuck with us our entire lives and shows in the way we conduct business.
“Make yourself at home”, is a phrase you will often hear from us. Comfort. Joy. Laughter. The pinnacles of a good life. Creating an open door, is how we live our lives and how we choose to do business. The best part of being realtors is having the ability to guide someone through the process of finding their home, wherever it may be, there is nothing better than going home.
For us, home is our happy place. Spending time with our families and friends is truly what makes us our best selves.
How do you define home?
Request more information by submitting the form below: