What Does Weather Have to Do With Real Estate?
Real estate experts and meteorologists have some things in common-predictions and the ability to make forecasts. These professionals have been blessed with the gift of foresight. Meteorologists can predict if it will rain heavily on a particular day or if the intensity of the Sun will be high. Real estate experts can predict how the cost of buildings will be within the next 12 months.
More often than not, the predictions of these experts do not always come to pass. Meteorologists might forecast the direct opposite of what eventually happens. According to weather forecasts, there will be freezing temperatures which will last a fortnight across the United States, starting from this weekend. The professionals in the Real Estate World have made their prophecies for housing rates in 2018 and some of these forecasts have come to pass.
Internet sensation, Brad Inman, who is the content producer of Inman Real Estate news, an online publication for Realtors and Brokers reminded everyone that his predictions came to pass after he predicted that the prices of housing will skyrocket in 2017, he made these predictions before the end of 2016. However, in 2018 things didn’t pan out as he had foreseen them. Notwithstanding, he went ahead to make ten predictions of what real estate businesses will experience in 2018. One of these forecasts includes Internet giants like Facebook, eBay, and Google acquiring more assets and expanding their coasts in the real estate world. Real estate business is very charming.
Inman also added more ‘icing on the cake’. The real estate world and the entire economy will experience a huge boost this year. More jobs are being created, the rate of unemployment keeps going on a downward spiral and wages of employees have gone up. More businesses are making investments as time goes.
For those who are in the housing business, 2018 will be a bumpy but worthwhile ride, put on your brake lights’, the Australian born entrepreneur says. The growth of the real estate market in 2018 will not be affected by political upheaval.
Real estate magazine, Housing Wire towards the end of 2017 made half a dozen predictions for 2018. One of these includes an increase in the sales of homes as sales of new residential buildings will lead the market. Also, agreeing to the forecast by realtor.com, Housing Wire stresses that older homes will experience little sales. The online magazine also agrees with Director of Economic research, Javier Vivas’ prediction. Mr. Vivas has foreseen that expensive houses will have increased inventory especially after residential houses buying season, this has a positive impact on the gross sales of the year. These inventory increases are expected to continue in 2019 to alleviate the burden felt by individuals who are buying homes for the first time. This also boosted sales.
According to realtor.com, these are the areas that will experience a change in the real estate world in 2018.
Cost of homes: In 2018, the profit on homes will experience a slight increase of about 3.2%, this is expected to progress slowly in 2019 and beyond.
Rates on Mortgage: The interest rates on homes will increase by 4.5% all through 2018, but will shoot up to 5% before the year runs out. This prediction also coincides with that of the Mortgage Bankers Association.
Sales of existing homes: Existing homes sales are expected to rise by 2.5% in 2018.
Housing Starts: Single-family houses, townhouses, and apartment buildings will experience a 3% increase in 2018. Single-family houses will experience surge to 7%.
New Home sales: In 2018, the sales of new homes will rise to 7%.
Homeownership rate: Homeownership rate which hit rock bottom in 2016, will experience a staggering increase of 63.9% in 2018.
The Federal Department of Housing and Human Development (HUD) makes annual forecasts of the Real estate pattern of over 300 urban areas in the country. The HUD has predicted a growth in areas like Dorchester and Berkeley. It also predicted the rate of home sales and rentals for over 20,000 homes within a 12 month period.
The demand for rental units in 2018 is already increasing. Currently, about 7,475 market-rate units for rent have been demanded. Construction of 4,650 more units is still ongoing, as reported by the HUD.