2017 is almost in the books. We’ve had an interesting year in the real estate industry. The housing market remains strong. Attractive interest rates keep demand high. However, a lack of inventory is affecting the market.
According to the multiple listing service homes for sale fell 3.4% from October to November 2017. The inventory in November 2017 has fallen 10% when compared to November of 2016.
Sold properties from October to November 2017 rose by 16.9%. However the sold property in November 2017 dropped 13.6% when compared to November 2016.
There is about 2.3 months worth of inventory on the market as of November 2017. Lack of homes for sale will keep buyer competition fierce.
According to the California Association of Realtors forecast of 2018. “Solid job growth and favorable interest rates will drive a strong demand for housing next year,” said C.A.R. President Geoff McIntosh. “However, a persistent shortage of homes for sale and increasing home prices will dictate the market as housing affordability diminishes for buyers struggling to get into the market.”
The tax reform plan from Washington will affect the market as well. Homeowners will not be able to write off property tax over $10,000 per household. Writing off mortgage interest against ordinary income will be capped at a loan amount of $750,000 down from $1,000,000. This might make it less advantageous for some to own property.
It is my opinion that the real estate market will remain strong in 2018. The advantages of owning a home far outweigh the disadvantages. Demand for homes will keep prices moving up albeit slightly.
Buyers will need to go through the necessary loan qualifications prior to writing an offer. Buyers must write viable offers based on market data to remain competitive.
Sellers can continue to price their homes aggressively, provided they study and understand the market data.
Both buyers and seller should continue to rely on real estate professionals when making real estate decisions.
For the full article from C.A.R. follow the link below
For all of your real estate needs contact me through my website link below