As we transition into the new year the pertinent question is: what does this year bring in terms of market change? Thanks to Windermere, we have a famed economist who provides expert insight on the real estate markets and we happily share it with you:
First time homebuyers took credit for 34% of housing purchases in 2017 with their attention attracted to cheaper markets. According to our economist, Matthew Gardner he is expecting the first time homebuyers' percentage to increase as we transfer into 2018. He also predicts millennials will hold the most influence in the housing market for 2018 and will begin buying in expensive territory which will normalize the market.
Among other projections, chief economist, Matthew Gardner predicts the following:
- Interest rates to increase to 4.4% for conventional 30 year fixed rate mortgages
- Newly built homes prices to increase 4.1%
- Existing home prices to increase 3.7%