Among the many predictions promoted at the beginning of each year, are the ones related to the real estate market. 2018 is no exception, and the ones emerging are both encouraging and hopeful. According to the prognosticators, the Bay Area can look forward to a year of moderate gains in home prices and rising inventory levels.
Javier Vivas, director of economic research for realtor.com, predicts a home price increase of 3.2% this year, less than last year’s 5.5% increase year-over-year. He sees the San Francisco market losing steam, perhaps a good thing for those who have been waiting in the wings for the frenzy to subside.
An inventory shortage has hampered the housing market since 2015, largely because new home construction was stalled. The National Association of Home Builders chief economist, Robert Dietz, predicts an expansion of the construction industry in 2018 and beyond. He expects it will happen slowly thanks to a limited labor market, scarce land availability, tight bank financing, and increasing costs of building materials. But there is light at the end of the tunnel as builder confidence registers its highest level since 1999.
If you are hoping to become a new homeowner in 2018, or if you are a lender/realtor wishing to help a client get into a home, please give us a call. We have made homeownership happen for thousands of clients over the past 30 years, and we look forward to making it happen for you with a Hard Money Loan in 2018!