Whether you are selling or buying homes for sale in Lynden, WA, knowing what is happening in the market place is very beneficial. As I have discussed in other blogs, the monthly stats are super important as far as things like pricing and days on market are concerned. In addition to these numbers, knowing what the general trends are for the next year is also super helpful. The folks at realtor.com put together a realistic forecast after diving through historical real-estate data and other major economic indicators. So how is it looking? Let’s check it out!
Supply is supposed to catch up with demand.
For the past three years, buyers have been feeling the impact of a sellers market with minimal homes for sale in Lynden, WA to choose from. As prices went up and mortgage rates stayed at historic lows, there was slight pressure put on buyers to lock in a great rate, however their buying options were limited. While 2018 is still expected to be challenging for buyers, the last half is supposed to see things ease up thanks to new homes for sale in Lynden, WA coming on the market. This is thanks to new construction which actually adds inventory instead of shuffling people around. Initial relief is expected in the $350,000 and up range before it trickles down to the “lower tiers”. Pricing will go up at first, but then slow to a 3.2% growth year over year across the nation. This means buyers will need to be patient a little longer. For sellers, you may want to think about listing your Lynden, WA homes for sale before the inventory and pricing eases up. This increases your chances of making the most money at resale.
Millenials will continue to buy
While a lot of millenials struggled with handling student loan debt and taking on a mortgage at record high prices, this year will give them more success in the real estate arena. Not only will they eventually have more inventory available to them, but thanks to their continued income growth they will be able to take on bigger mortgages. This means they are not limited to starter homes. This particular group is motivated to buy as they settle down and begin to think about starting families. In fact, they are expected to make up 43% of the buyers. This upswing could result in hundreds of thousands of new homes which can start a rebound for the years to come. Of course, waiting isn’t recommend as mortgage rates are expected to hit 5% by the end of 2018.
The new proposed tax reform
This could change everything but the jury is still out. If a version of this tax reform does come to pass, we can expect to see declining home prices and less homes for sale in Lynden, WA.
The South is where it is at
While Seattle is expected to be the hottest market of 2018, the Southern states are also expected to beat the national average this next year. In fact, cities like Dallas, Charlotte and Tulsa are expected to have a 6% growth compared to the national 2.5%. Of course, the South has been hot for a while. With low costs of living, strong economic growth and warm weather, buyers have been snapping up luxurious homes for a great price point for a while. Of course, as a Lynden, WA realtor, I am curious to see how Seattle’s continued growth impacts us up North. Bellingham real estate, Lynden real estate and Whatcom County real estate in general have continued to see rising prices and less inventory for a while. With so many folks being priced out of King County, some home owners have been forced to buy farther and farther away and commute or work remotely thanks to the booming tech industry. The one thing we know is that 2018 is going to be a big year for real estate. If you have been thinking of buying or selling Lynden, WA homes for sale or are currently looking for a Lynden, WA realtor, let me know. I would be happy to help you navigate this market!