How Is the 2018 Real Estate Market?

The 2018 real estate market started out with a bang. How are
market conditions for buyers and sellers right now?





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What’s happening in the February real estate market? The new
year started out with a bang. Historically, the market is slow
at the start of the year and picks up towards the end of
January or February. Right after January 1, 2018, we saw an
increase in the number of homes for sale and the number of
properties going under contract. All in all, the market
remains strong. The economy continues to roar. However, the
Feds are going to increase interest rates over the course of
2018, which will impact buyers and sellers. There are still a
few favorable elements in our market for sellers. We are
currently running around 18% less inventory for sale compared
to this time last year, and we know that 2017 had even less
inventory than the year before that. As a result, prices will
remain high and strong, which is great news for sellers.
Additionally, millennials are starting to enter the market,
which is a strong element for our economy. That said, it looks
like 2018 will continue in a seller’s market.


All in all, the market remains strong.

If you are a buyer, the good news is that interest rates
remain low at around 4.25%. The bad news is that limited
inventory leads to more competition, so you need to have all
your ducks in a row when you enter the market. The other
bad news for buyers is that the Fed has announced that they
will increase rates again in 2018. Rates are expected to go up
three to four times between now and the end of the year.
Because we are running low inventory and buyers are having a
hard time finding properties, we are starting to see more
activity with pocket listings. By definition, a pocket listing
is when a seller wants to sell but doesn’t want to go through
the rigamarole of putting their house on the MLS and dealing
with showings. We are definitely seeing an increase in
pocket listings in the immediate market. In 2017, 15+% of
homes sold were pocket listings. That means if you’re not
working with a real estate professional who’s tapped into the
real estate community, you will probably not know about these
opportunities to buy a home. If you have any other questions
about buying or selling a home in 2018, just give me a call or
send me an email. I would be happy to help you!