The real estate market will continue to see gains in terms of sales in the years to come. For 2018, industry experts are looking towards a robust demand for affordable homes. In the United States alone, many real estate buyers are expecting to come across properties that best fit their lifestyles.
It’s important to note that the real estate market will experience substantial growth as 2018 rolls by. This is due to several political and economic factors affecting the housing industry. In an article published in Forbes, Samantha Sharf has taken note of major developments that will greatly impact the real estate market – perhaps, for the better!
The reduction of property taxes which was signed by President Donald Trump recently as well as strong demands from millennial demographics will further drive growth upwards. The resulting optimism shouldn’t last long however. There are still a few things to consider before we could engage the market with newfound confidence
Apparently, no other real estate market is more affected by such situations than that of the West Coast. As much as it is important to point out that West Coast real estate is performing well, there is still some level of caution to exercise as 2018 continues to tick.
We should take a look at the following factors.
Climbing home prices
Real estate prices will continue to soar, particularly in the Southern California area. This is due to high demand for affordable properties from younger demographics. The trend will likely to continue in the next four or five years on account of a high mobility from the countryside to cities such as Los Angeles and San Francisco. This just as well offsets the optimism reserved for the looming tax breaks that the federal government is giving. But one positive aspect of this is that real estate is gaining value. This means that the market for homes in the west coast is slowly regaining ground after a devastating housing bubble that left much of the financial system in shambles a decade earlier. Real estate experts are leaving space for caution though, as rising prices are not being evened out by relative rises in wages.
Steady sales ahead
It is also important to note that despite negative trends, the west coast home market will still enjoy steady sales in the months to come. As mortgage rates are expected to rise significantly, real estate sales will still see a few successes here and there. In fact, a report from the Mercury News points that sales will rise by one percent in 2018, with at least 400,000 transactions to boot.
Better job growth
Against this backdrop of growing interest rates and prices, people on the west coast should also expect the real estate market tom ease out on these issues as employment rates have gone up. Unemployment will continue to plunge as new opportunities in Silicon Valley and other industries are being opened for the millennial crowd. The idea that owning a home is far from impossible will surely take a step back.