Jan. 1, 2018
Nationwide housing prices are expected to continue going up in the New Year – by about 4 percent according to a recent survey by Zillow.
Zillow predicts home values in the Seattle metro area will climb 6 percent next year, a significant slowing from the current 12 percent annual rate.
A continued lack of homes for sale will keep pushing prices higher for the foreseeable future.
“It will create particularly strong headwinds for first-time home buyers, who don’t have the benefit of profits from a prior home sale to boost their down payments and make them more competitive,” writes Zillow’s Chief Economist Svenja Gudel.
Nationwide, there are 12 percent fewer homes to choose from right now than there were a year ago. And about half the homes on the market (as of September 2017) are in the top one-third of home values. This makes it too expensive for many younger, first-time and millennial buyers.
Mortgage rates are another important factor for home buyers. The 100 experts surveyed by Zillow believe 2017’s low mortgage rates will rise from the current 3.9 percent to around 4.5 percent.
More Info: 2018 Predictions: The Inventory Crisis Will Drive the Market