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Top Five Real Estate Trends To Look Out For In 2018 As A First-Time Home Buyer

Written by Posted On Wednesday, 03 January 2018 01:04

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Typically, during this time of year scores of people start looking at property in order to get in early on the buying action, so there’s no better time than now to look at the forecasted trends for the 2018 real estate market. Without a doubt, the year 2017 has seen some very interesting and exciting developments in the real estate industry, thanks to new construction trends, increased millennial buying and boundary breaking design that really set the bar high for 2018. However, not all of these trends are worth your time if you’re a first time property buyer, which is why we’ve compiled a comprehensive list of real estate trends to look out for as an aspiring first-time home owner in 2018.

  1. 1. Slow price increases

As per usual, home buyers can expect price increases in real estate property but this year, those increases will be moderate and slow, especially when it comes to upmarket property which is experiencing higher amounts of inventory with each passing season. This will also lead to healthy price gains in the affected areas, while entry-level purchasers can still expect rapid price increases due to having access to a dwindling supply of available homes at the moment.

  1. 2. Increase in inventory

The expected growth of real estate inventory this year is staggering! High priced property buyers now have a large pool of inventory to choose from with very little to no decline in sight, especially during the peak buying months, which are usually between April and July. However, entry level property buyers will feel the pinch, as inventory levels have been considerably depleted in this category since the past year, but this trend will continue to significantly drive home sale growth in the coming years as well.

  1. 3. Increase in millennial market share

The millennial age group is finally growing up, and predictions state that millennials will make up more than 40% of new home buyers in the year 2018. Millennials are also the dominant age group in the first-time home buyers’ market, and this year they’re expected to compete with the baby boomers and other earlier generations for upmarket real estate, thanks to an increase in financial security and a rise in the inventory of middle and upper level mortgages.

  1. 4. Renovating is the new upgrading

Increases in taxes will motivate current home owners to renovate their homes and elevate their properties to a higher standard and value instead of upgrading to a new property. Renovating is a cheaper and in most cases, a more effective way of upgrading one’s property value, and apart from the taxes associated with purchasing new property, high moving costs and deposits are also a motivating factor to this trend. This inclination towards refurbishing instead of upgrading is expected to continue in the next five years, leading to an increase in inventory, especially for first-time home buyers.

  1. 5. Unpredictable tax reforms

The global real estate market is set to face unpredictable tax reforms that will severely affect sales for the coming year. For example, the USA government is expected to vote on a newly passed tax bill soon, which will most likely diminish tax benefits for home owners while also reducing the incentives that are usually associated with upward mobility. This will obviously influence and most probably dampen property prices. On the other hand, renters can expect to enjoy tax cuts as a result of the increase in apartment stock in the mid to high level ranges.

For more information on how to buy smart and get the property of your dreams that also meets your needs, visit the ever helpful Karkanja website on karkanja.com.

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