2018 Real Estate Mkt: The Year of the Seller

Interesting article by Jotham Sederstrom, who has written about politics, finance, real estate, criminal justice and advertising for publications including The New York Times, Adweek, Spin, The New York Observer and The New York Daily News. A native Nebraskan, he now lives with his wife and son in Brooklyn.  Below is his forecast for the 2018 Real Estate Market.
Will 2018 be a buyer’s market or a seller’s market?

Real estate experts and economists agree sellers will continue to hold the cards

 

BYJOTHAM SEDERSTROM Staff Writer

DEC 26 

With inventory at historically low levels and demand for housing skyrocketing in most markets, economic analysts and real estate experts believe 2018 will be the Year of the Seller.

 With few exceptions, analysts contacted by Inman News forecasted yet another year in which a scarcity of homes in the real estate market will allow private and institutional sellers to keep prices high, especially as a growing segment of first-time millennial buyers take the homeownership plunge.

 “Clearly, 2018 appears to be another seller’s market,” said Mark Fleming, chief economist at First American Financial Corporation. “The shortage of supply relative to increasing millennial demand will not change next year. In fact, it may be exacerbated as more millennials decide to become homeowners and more sellers become prisoners in their own homes, as mortgage rates rise and fear of not being able to find something to buy increases.”

Low inventory, perhaps more than any other economic driver, will be a major hurdle for buyers in the coming year. Indeed, even as overall housing starts spiked to 1.297 million units in November, most experts believe bouncing back to a 50-year average of 1.5 million new units will be no easy task — and until then, the listings shortage will dramatically affect pricing, for better or for worse.

“Builders have been ramping up somewhat over the past year, and that should continue going forward,” said Svenja Gudell, chief economist at Zillow. “But in order to satisfy demand from entry-level buyers in particular, builders will need to find more affordable sites farther from job centers — and it’s unclear if buyers will be willing to sacrifice their commutes for affordable homes as they did in years past. And in general, it will take many years of above-average building activity to help erase the housing deficit we’ve created after years of under-building.”

According to Redfin’s 2018 housing market forecast, a whopping 25 percent of homes sold within two weeks or less during the peak of the buying season in 2017, and nearly one in five homes, or 19 percent, left the market in less than a week.

But mortgage rates, which are expected to rise, on average, to just 4.5 percent by the end of 2018 — and changes to the tax code that may deincentivize homeownership, could tip the balance of power to buyers and give them more room to negotiate, especially in luxury markets.

“I think you’re going to see sellers have less pricing power than they did this year, particularly in states like New York and California,” said Nela Richardson, chief economist at Redfin. “Buyers are going to be ready to play hardball because they’re not getting as much from buying the house as they did this year. And maybe less pricing power in other places, too, because consumers can only pay so much and prices have gone up so strongly.”

Lawrence Yun, chief economist at the National Association of Realtors, echoed a similar sentiment: “The housing shortage will still persist in many markets due to the legacy of slow rate of homebuilding over the past decade,” Yun said. “But due to the tax reform providing less financial benefit to be a homeowner, the overall price increase will be much softer in 2018, by 2-4 percent.”

Added Steve Cook, a real estate communications consultant at commsconsulting.com:

“The inventory drought will continue to be enough of a factor to keep supplies below normal. Most markets will continue to be sellers’ markets, especially for entry-level homes, hotter markets and markets where prices are high and new construction is costly, like the Pacific Coast. Luxury and premium markets will be more evenly split between buyers and sellers.”

Email Jotham Sederstrom

 

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Hot Home Design Color for 2018!

BEHR just came out with their 2018 Color of the Year pick. It’s called “In the Moment” and it’s such a perfect name because blue/green/gray colors are truly the hottest “In the Moment” color right now!

How exciting for those of us who love to see homes with the latest trends and ideas to recreate in our own homes!

Check out this awesome blog post from The Creativity Exchange and enjoy her pics below!

Restaurant Week: Red Drum Menu

Join Red Drum Restaurant for Charleston Restaurant Week!
January 10-21, 2018
This special menu features your choice of an appetizer, entree, and dessert for $40.
If you combine that with half-priced bottled wine, you’ve got yourself the perfect date night (or ladies night).
Click here to see the menu and start making your selections.
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Meet Dawn Blackstone of Blackstone Fit!

Dawn Blackstone, owner/trainer with Blackstone Fit, recently relocated from Seattle to Mount Pleasant. Dawn is a NASM Certified Personal Trainer, Corrective Exercise Specialist and Certified Advanced Sports Nutrition Specialist. She has run Blackstone Fit for 10+ years.   She is available for one on training, small group training, and currently offers a Sunday outdoor class (9-10am) at either Pitt St Bridge or Alhambra Hall open field.

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All classes are a full body functional fitness workout with intervals of cardio mixed in!  All levels are welcome and your first class is free, then $10 per class.
To learn more about Dawn, check her out at  blackstonefit.com or come join a class!

Station 28.5 Photography

You need to stop what you are doing and check this out!  

Jason Ogden is a professional photographer specializing in drone photography based on Sullivan’s Island, SC.  He began capturing Charleston area scenery from the air in 2016.  His distinct style is full of vibrant colors while capturing unique images of Charleston area favorites like the Old Pitt Street Bridge and the Pineapple Fountain.  His straight down ‘overview’ images of Lowcountry scenery take on an almost abstract quality while revealing the beautiful patterns all around us.  And definitely check out his Cargo Ship series!  We never knew how beautiful those ships could be; the containers look like colorful Lego bricks!  So cool!

Station 28.5 Photography FB page

Station 28.5 Photography Instagram

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If you love what you see, you are in luck! Jason sells fine art prints of his photos. For more information and pricing, email Jason at  station285photo@gmail.com

I could look at his photos all day!

 

Just Listed :: 706 Simmons Street

New construction on a large lot with 5 bedrooms, 3 baths & 3482 square feet. Offered at $1,365,000. For more information,  click here.

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Features include:

*Lovely brick-lined walkway leading to a charming front porch with elegant mahogany exterior doors

*10-foot ceilings, 4-inch oak flooring, wood-planked/Shiplap walls, custom light fixtures, and solid core 5 panel doors

*Gourmet kitchen with stunning, oversized marble island (12 feet)

*Living room with gas fireplace and reclaimed mantle and large windows that offer tons of natural light

*Large, private back yard, fully fenced and surrounds a beautiful oak tree

 

For more information and/or to schedule a showing, contact Jackie Kelly at 843.991.9111 or Jackie@thecassinagroup.com.

 

 

 

 

Old Village Branch Library Events!

Activity Zone throughout October from 3-4 p.m.  Enjoy coloring pages, puzzles, and checkers.

STARR Therapy Dogs Saturday, October 14th at 10:30 a.m. Come read to a furry friend.

Mad Hatter’s Tea Party Friday, October 20th at 10:30 a.m. Put on your favorite hat to earn a prize, and join the Mad Hatter’s Tea Party.

Halloween Stories and Crafts. Saturday, October 28th, at 11:00 a.m. Listen to Halloween stories, create a craft, and wear your costume to earn a prize.

halloween