2018 Housing Forecast-Insider Info
At Windermere, we’re fortunate to have Chief Economist, Matthew Gardner, as part of our team to provide valuable analysis of the economy and housing market. In January, Matthew was the keynote speaker at the Salt Lake Board Of Realtors forecast breakfast. We’re sneaking this insider info to you, because we think you’ll be interested in his predictions for the 2018 housing market.
These forecasts are made at a national level, so we have some additional forecasts for SunCrest.
- First, SunCrest has seen the total number of existing homes sales decline over the past three years. Put simply – fewer homes were sold in SunCrest in 2017 compared to 2016 and 2015! While we don’t project a further decline in existing home sales, we expect to maintain current sales levels — approximately 10 home sales per month, typically with spikes in Q2 and Q3.
- Second, barring any substantial changes to Edelweiss or Hidden Canyon Estates, we project new homes sales will exceed 10% of all SunCrest area sales. To date in 2018, new construction makes up nearly 50% of all current homes for sale, and over 80% of sales currently pending.
- As of the this writing, the average rate for a 30-year fixed-rate mortgage was 4.40 percent, on pace to exceed Gardner’s projection.
We agree with Gardner’s projection about concerns of lack of available inventory and unsustainable home price appreciation. We anticipate prices leveling off in some markets, as would-be buyers become capped financially due to rising interest rates and historically high levels of debt. However, we do not foresee any reason to panic and expect 2018 to be another strong year. Even more than last year, we think that sitting down, reviewing all the facts, and walking through your goals will help prepare you for your next move.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.