Housing experts recently upped their predictions for the real estate market in 2018, predicting home prices to rise 4.1 percent as opposed to the originally anticipated 3 percent.
The 2017 Q4 Zillow® Home Price Expectations Survey, sponsored by Zillow and conducted by Pulsenomics LLC, asked more than 100 housing experts, market strategists, and economists about their expectations for the U.S. housing market in 2018 and beyond.
The revised pricing prediction is based largely on the ongoing inventory shortage. According to the quarterly survey, the number of homes for sale in the United States has fallen on an annual basis for the past 33 straight months. Although building activity picked up slightly toward the end of 2017, the biggest surprise was the slow pace of single-family home building, according to the panelists. Only 16.7 percent expect it to change in 2018, a sign that limited inventory will still be a driving force in the housing market this year.
Given the predicted rise in values for the coming year, 2018 may be the right time to put your home on the market. Consider the following variables to help you make that decision:
- Talk to your local real estate professional to determine your home’s current value and the amount of equity you have accrued.
- Figure out what home improvements may be warranted to significantly increase the listing price of your home.
- Find out what your agent’s game plan will be for marketing your home: Which listing portals will he or she use? Are staging services offered? Will there be an open house?
- Determine what your next move will be. Are you looking to move up? You may be confronted with the same rising prices depending on your next living situation, so be sure you have the financial means for your next move.
It’s also important to keep in mind that while home prices are expected to rise in 2018, so are mortgage rates. Experts believe they may reach 4.5 percent from the current rate of about 3.9 percent. This is still well below the 6 percent rates seen during the run up to the housing bubble, however, the increase may get would-be homebuyers off the fence and into action before rates go even higher.