The real estate industry is booming in many parts of the country. As prices continue to increase, there are many buyers who are struggling to find a home within their price range. Over the past few years, a lack of inventory has caused issues in numerous real estate markets.
Interest Rates
One of the biggest variables impacting the real estate market is the rate of interest available to borrowers. There are many people who are excited about the different loan options today. However, many people expect that interest rates will increase in the coming years. As a result, the real estate market could be impacted by higher rates in the future. This is important to remember for anyone who owns real estate.
Lack of Inventory
There are some buyers who want to purchase a home but cannot find one for sale in their area. Over the past few years, the amount of available inventory on the market has decreased rapidly. In many areas, homes are selling as soon as they list. This is frustrating for many people who want to purchase a home.
Many home builders are trying to keep up with demand. In some areas, it is simply not possible to build enough homes to meet the needs of real estate buyers. This is a trend to watch in 2018. If inventory continues to dwindle, prices will continue to increase throughout the country.
Remodeling
There are many people who have high levels of equity in their home. As a result, many homeowners are remodeling to increase the value of their home. This is a great sign for the housing market. As a general rule, people spend money to improve their home when they are confident about the economy.
Future Trends
The real estate market is expected to continue improving in 2018. Now is one of the best times in history to sell a home. With more demand from buyers than ever before, many sellers are able to get record prices for their home.
Real estate investors are struggling to find deals in the current market. With almost all of the inventory gone, it will be interesting to see if home builders can keep up with the demand from buyers. Until that happens, home prices will continue to increase.