Market Update: 2017 vs. 2018
It’s time to look back at 2017 and forward to what we can predict for our market in 2018.
Last year, we predicted that pricing would trend upwards by approximately 5%. What actually happened was that prices rose by 7%, with the median sales price having increased to $246,000.
Inventory reached all-time lows last year, with around 13,300 homes on the market at the time. Now, inventory is actually down to 11,300.
As a final note on our recap of 2017, interest rates rose through the first quarter of the year last year only to drop to where they are now. Currently, interest rates are even lower than they were a year ago. As they stand, interest rates are in the high 3% range.
So, what can we expect from 2018? Similarly to what we saw in 2017, we predict that prices are going to rise at least another 5% if not more due to low inventory and low interest rates.
Last year, when we believed that interest rates were as low as we would see for some time, we were actually incorrect. Interest rates today are even lower than what we saw in 2017 as we enter the spring season, and we predict they will stay relatively low throughout the year.
If you are a seller, now could be the right time to take advantage of our market. For example, our team just saw a seller put their home on the market and receive eight offers at close to 10% above list price.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.