As America heads into the big spring selling season, all signs point to a robust housing market in 2018.
Demand is high and homebuilders are upbeat. The National Association of Home Builders (NAHB) confidence gauge is at its highest level in 18 years. Record numbers of home shoppers are packing sales centers and open houses.
The pace of annual construction spending soared to a record $1.257 trillion in November, and starts of single-family homes and building applications are the strongest in a decade.
But will vigorous construction be enough to offset exceptionally weak inventory?
With new and existing home sales skyrocketing, the national inventory is pegged at just 3.4 months, the shortest timeframe since 1999, and far short of the 6-month supply considered necessary for a healthy housing balance.
Home builders say they’ll concentrate more on affordable housing in 2018, but the lowest-priced new homes will still average about $350,000, well above the national median.
Homeowners are staying longer in first and second homes, pushing existing home prices ever higher. As a result, many first-time or Millennial buyers may still feel that home ownership is out of reach.
Lenders, Realtors and buyers alike need to keep focusing on the positives.
To really grow, the market needs to accommodate buyers at all income levels.
Home ownership is the best path to long-term financial success! Contact your trusted Bay Equity lender today for a litany of financing options. With rates still historically low, it’s all still possible!
At today’s prices, you can spend half a million dollars on rent ($1,500 a month for 30 years comes to $540,000), and wind up owning nothing, or you can buy a house and spend the same amount paying down a mortgage, and wind up owning a home free and clear.