Whether you are considering investing in real estate or selling your own home, it is important to stay abreast of trends impacting the real estate industry. From home automation to the changing profile of the average real estate buyer, 2018 is set to be an exciting year for the real estate market. Below are four real estate trends to look out for in 2018.
1) The number of homes sold to international buyers will continue to increase.
The number of California homes sold to buyers outside the United States rose from roughly 32,000 in 2016 to 34,000 the following year. This trend is expected to continue in 2018. Reasons for this increase in foreign home buying include the strength of the California real estate market and the attractive home prices in comparison to home prices in industrialized nations overseas.
2) Millennials will begin to dominate the market.
“Millennials could make up 43% of homebuyers taking out a mortgage by the end of 2018, up from an estimated 40% in 2017, based on mortgage originations. That 3% uptick could translate into hundreds of thousands of additional new homes.”
– Realtor.com data team
Millennials are already commanding the largest share of lower price home mortgages and are close to doing the same for mid to higher-priced mortgages. With a fairly high degree of financial security, millennials will be a force to be reckoned with in 2018.
3) Automation will play a critical role in real estate.
Automation will make its presence known to buyers, sellers, real estate agents, and mortgage lenders. As Americans learn more about the benefits of smart homes, researchers forecast that over 50% of all homes in North America will feature home automation by 2021. Additionally, mortgage lenders will increasingly automate their loan application process to facilitate cost savings and faster turnaround times.
4) More people will purchase vacation homes.
As a result of the tax reform bill, wealthy Americans will have more cash available for non-essential purchases such as vacation homes. Additionally, 2018 is expected to bring an increase in the number of investors in single-family rental homes because buyers of single-family homes can write off the costs of a single-family rental home as a business expense.
What is the best way to stay on top of 2018 real estate trends?
Staying on top of changes to the real estate market is essential for anyone interested in buying or selling a property. Contact The Shafran Realty Group in Carlsbad to keep you informed of industry trends that could have an impact on the sale of your home.