The new year is here, and with it brings expectations and analysis for the real estate market.
As a 2017 Kiplinger report shows, last year saw home sales and prices rise, in large part owing to reduced inventory available. Will these metrics stay the same in 2018?
But sales volume isn’t the only trend to watch in 2018—interior décor, home styles, and even living arrangements are expected to look different this year. How your home looks and feels is important to your comfort, but it’s also a factor to consider if you are looking to buy or sell a home this year.
What’s in store for real estate in 2018? These expert predictions will give you some guidance.
New home construction is on the rise and will impact market inventory in 2018.
Thinking of buying or selling this year? It’s important to know how the market is likely to change from last year’s performance.
- Supply Catches Up To Demand
The high prices of 2017 were fueled, in part, by a lack of inventory. In places like Denver and Los Angeles, this resulted in record-high prices and record-low inventory levels at the close of the year.
The good news is, this phenomenon may start reversing itself by the latter half of 2018. This is in part due to astronomical rises in construction levels, of course, spurred on by the low inventory of the previous few years. When new homes come on the market, there isn’t as much competition to fit people into what already exists.
- The South Is Hot
While California and Florida remain strong growth markets, expect to see cities in the south grow more than twice as fast as the national average. Charlotte, NC, Tulsa, OK, and other similar metropolitan areas offer growing industries, warmer weather, and have seen a massive influx of new construction that will likely sell this year.
- Millennials Can Buy More
While finding a starter home at a low price in a hot market may still be a challenge for some, more millennials are now established in their careers—allowing them greater purchasing power. Experts anticipate millennials making up almost half of all homebuyers taking out mortgages in 2018.
Open and light spaces are in for 2018.
Design trends often go hand-in-hand with the real estate market. When you walk into a dated, musty interior, it won’t seem as appealing as an open, inviting space—and you may be less inclined to consider the first.
- Flexible, Open Floor Plans
Open floor plans are timeless, as they let you customize the space as much and as often as you want. Builders are anticipating this by leaving dedicated areas more flexible so that you can decide where you want your dining table or TV.
- Multi-Generational Living
Whether you want a place for your mother to stay, or you know you’ll need to take care of an aging family member, designing spaces suitable for multiple generations will be a trend in 2018.
- Open Shelving
From your kitchen to your bathroom, stop trying to stuff everything into cabinets and instead, opt for open shelving. You get more space for bulky objects, and you’ll always have everything in view.
- Light Flooring
Wood flooring is still the preferred option for homeowners in 2018, but they’re lightening things up. Look for white or gray wood flooring, and wider planks for a more rustic feel.
- Creative Colors
Expect to see a comeback of the brown palette as neutral, opposed to the grays favored in recent years, but you’ll also see more pronounced pops of color. Thanks to Pantone’s Color of the Year selections, jewel tones and watercolors will be popping up in rooms across the country.
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