Zillow Offers Bold Predictions for 2018 Housing Market

Zillow has released their predictions for the 2018 housing market. The company, using an immense amount of data from their real estate portal, suggests that the market will continue to struggle with inventory.

The 2017 housing market has suffered from housing shortages, which have kept millennials from buying new homes. Shortages have also led to housing price spikes, making homes even more unaffordable for first-time homebuyers.

Zillow outlines a continued housing shortage that will result in 12% fewer homes nationwide in 2018 than in 2017. More than half of all of the housing inventory are in the top one-third of prices, which is expected to continue into 2018.

Builders will change their focus this coming year, according to the forecast. Builders are expected to realign their focus on entry-level homes to help alleviate the inventory crisis. The amount of new homes in the country have been historically below normal levels, with a higher focus on profitable homes.

Builders are expected to be forced into catering to a new, lower-priced market that is willing to get into a new home. Construction on homes geared toward first-time homebuyers is expected to increase this coming year.

Millennials will also be making a big change from urban areas to the suburbs. Areas, such as Carolina Forest, are expected to have an increase in building, as prices in bigger cities are too expensive. Builders, in an attempt to offer lower-priced homes, are expected to start construction in suburbs to help keep costs low.

Lower prices and a great variety of homes are expected to draw first-time buyers to the suburbs.

Homeowners are expected to stop selling and remodel their homes instead. The trend will keep housing inventory at low levels. Potential sellers fear becoming buyers in a tight market, causing them to remodel their homes which, when they do sell, will be priced higher as a result.

Zillow does provide good news for potential buyers. The company suggests that housing prices will continue to increase, but at a slower pace than it has in recent years. The price of homes is expected to rise 4.1%, which is still above the normal rate of 3%. A report from September shows that the annual pace of home price increases was as high as 6.9% in September.

Slower-rising prices will allow first-time buyers to save money for down payments without prices rising too fast and causing homes to be out-of-reach.

Kiplinger’s 2017 housing outlook showed that in 2016 home prices rose 5.8% compared to 4% in 2015. Kiplinger was off with their prediction that home price growth would slow back down to 4% in 2017.

Austin’s home prices rose 14.5% in 2016, as buyers flock closer to big cities in an attempt to be closer to good paying jobs.

Housing prices still remained lower than their peak before the housing bust nearly a decade prior. The report also suggests that the Trump Administration must emphasize new policies to help improve housing inventory levels, which has yet to be accomplished.

Tax proposals, with a focus on tax breaks, may make housing more affordable for new buyers, according to Kiplinger.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

Forensic Science Breakthrough: Genealogy DNA Testing Identifies 39-year-old Skeletal Remains

In a groundbreaking case that merges genealogy and forensic science, the skeletal remains of a body known as John Doe were identified.

A Double Life – Makes a Docbusting Story

A Double Life is a documentary withTrue crime, Treachery, Tragic victim, Self-sacrificing hero, Omnipotent villain and International subterfuge.

Beyond Points: What to Expect at Loyalty360—and Why Blings Is Poised to Steal the Show

When marketers talk about “loyalty,” they often focus on...

Nuclear Power Fuels One-Fifth of U.S. Electricity as Oldest Reactors Keep Running

Illinois leads U.S. nuclear power output as aging reactors still run strong and Georgia's Vogtle Unit 3 signals a rare expansion.

U.S. Homeowners Get Bigger Tax Refunds in 2025 – Due to Rising Living Costs

Tax season is here again, and that means homeowners...

After The Death of Tzeela Gez, Seeking Painful Reprisal, Not Tweezed Action

Tzeela Gez was critically wounded in the terror attack. She was rushed to Beilinson Hospital while undergoing resuscitation in the ambulance.

Jane Austen Wrecked my Life – Blaming the Wrong Scapegoat

The film’s title is original and promises humor but,...

Is Generative Engine Optimization (GEO) Really the Future

Is Generative Engine Optimization (GEO) Really the Future? Everything...

Related Articles

Popular Categories