New year, new home! This may not be the exact saying, but a lot of people in the Orlando area are looking for a new place to call their own in 2018.
In the months of winter months (November, December, and January), the 2018 spring reals estate season is a bit up in the air.
Even with a solid economy, decent trade deals, and a solid recovery from the 2017 hurricanes, the labor shortages and increased lumber costs can cause a bit of a damper in the upcoming housing market costs.
If you plan on buying or selling your home in 2018, here a few factors that you may want to keep in mind:
Nationwide – Rising Home Prices
Home prices and rents will increase faster than most people’s income. The rental market remains strong and has a low vacancy rate. The number of single-family homes continues to remain limited across the country.
This is due in party to more demand than supply, the prices of homes and rental rates are predicted to rise 3 – 6% nationwide.
Millennials and renters are slated to be among those who are going to be the most impacted by the 2018 housing market. Significant rises in interests rates with increased prices in homes means homes will become less affordable.
No Foreseen Housing Bubble
With no housing bubble on the horizon, the risk of declines in housing prices is very low. Various analysis and predictive models are forecasting minimal chances of home prices decreasing over the next two years.
Orlando Housing Market Trends
According to the Orlando Regional Realtor Association, starting back in May 2017, the Orlando housing market heated up so much that about 30% of home sales received contracts within less than a week of being listed.
The significant job growth in Central Florida combined with the low amount of listings, increased fast-paced sales that was similar to that of the home sales conditions over a decade ago.
According to the Orlando Sentinel, prospective buyers only had about 8,800 properties to choose from in the month of May. This is down 17% from a year ago. The condo market had about 22% fewer listings. Single family homes down 16.2% when compared to the year prior.
Deciding to buy a home is a big step. If you want to make that next step and move into something more permanent, be sure to keep up with the local housing market trends. When it comes down to it, buying a house is your choice. It is impossible to say that buying a house is a good or bad decision. It strictly depends on your financial situation, as well as the trends of the current market.