Overall, in this new year, it is predicted the housing market will continue to bounce back as it has been for the past year. In November 2017, existing home sales escalated to a rate that hasn’t been seen in the past 10 years and reaching an 11-year high. The existing home sales totaled 5.81 million that amounted to an increase of 5.6% from the month before. The inventory of homes decreased 7.2% to 1.67 million that is 9.7% lower than it was in November 2016.
It’s also predicted the inventory of houses will continue to further decline. The law of ‘supply and demand’ kicked in making housing prices rise. The economy is the driver with more jobs being created and the lowest rate of unemployment in decades. The stock market reaching all-time highs is fueling home buying as well.
It’s expected that more millennials will buy homes for the first time this year even though they’ll be faced with higher prices. Millennials will also contend with saving money for down payments and able to make competitive bids for the homes.
Real estate analysts anticipate that homebuyers who faced hardships, foreclosures and loss of homes during the Great Recession will be making a comeback and will be buying homes again during 2018.
However, tax reform capping mortgage interest deductions is a high concern for homebuyers in California and the northeast. The consequence in these areas may be a slowing down of existing home sales, home prices and new home building.
The top ten areas in our nation where the housing market is expected to increase significantly are: 1) Grand Rapids, Michigan, 2) Nashville, Tennessee, 3) Raleigh, North Carolina, 4) El Paso, Texas, 5) San Antonio, Texas, 6) Fort Worth, Texas, 7) Austin, Texas, 8) Columbus, Ohio, 9) Madison, Wisconsin, and, 10) Cincinnati, Ohio. These markets have a high employment growth along with higher housing vacancy rates. Additionally, these areas, on average have younger (35 years old and under) prospective homebuyers.
Nationally, existing homes averaged 40 days on the market before selling. More than 44% of the homes sold were on the market for less than 30 days. The average price for an existing home was $248,000 (existing condominium was $242,0000). Broken down into regions, the average median price for existing home in the Northeast averaged $273,600, the Midwest was $196,100, the South was $216,000 and the West was $375,100.
Almost 22% of the existing home sales were all cash sales with investors making up 14% of these sales. Investor-bought homes continued to frustrate first-time homebuyers who were either outbid and/or passed over in favor for the all cash sales. First time homebuyers, however, made up 29% of all existing home sales in November.
If you would like to purchase or sell a home without a real estate agent, or have questions regarding your real estate closing documents, contact Gantenbein Law Firm's Denver real estate attorneys for help. Or, If you would rather use a broker for your home sell or purchase, contact Keith Gantenbein, who, in addition to being a premier real estate attorney in Colorado, is also a licensed Colorado real estate agent.
If you have tax issues concerning your home buy, or capital gains tax questions regarding selling your home or real estate investment, Gantenbein Law Firm's Denver tax attorney can assist with all your tax questions and give you the best outcome for your tax liability or protection.
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