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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New Listing in the Old Village: 517 Royall Ave

Spacious Old Village 4 bedroom, 3.5 bath home with over 3500 square feet on a beautiful private lot with in-ground pool! Offered at $1,349,00.  Click here to see more, SearchOldVillage.com

Features include: *Large living room with many windows and fireplace *Spacious kitchen/ dining area, completely renovated with granite countertops, sea-glass tile back splash, stainless appliances, gas range and butler’s pantry *9+ foot ceilings, crown molding and beautiful hardwood floors throughout *Double doors lead to the private, fully-fenced back yard with pool *First floor bedroom with private bath *Second floor features include a large family room with hardwood floors and 9+ foot ceilings *Master suite with walk-in closets, huge bathroom with double sinks, soaking tub and stand-up shower *Two additional bedrooms with shared bath *Third floor offers a huge bonus room – perfect for home office, gym and/ or media room. *Detached garage.

 

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

PRICE REDUCED: 813 Pitt Street- Old Village

PLEASE NOTE THAT THE NEW PRICE FOR THIS HOME IS $1,559,999!Pitt 1

This lovely 4 bedroom, 2800 square foot Old Village cottage sits on one of the largest lots in the Historic District and exudes charm!

Home features include:

*Renovated Kitchen with open flow to dining area

*Marble counter tops with a beautiful wood-topped (mahogany) island

*New stainless steel appliances including Bosch refrigerator and dishwasher and GE gas range with griddle

*Adjoining dining room could double as family room/second living space

*Formal living room with built-in book shelves, gas fireplace, crown molding and wood floors (throughout first floor)

*French doors lead to a fabulous, over-sized screened back porch

*From porch, travel along the flagstone walkway to the most adorable out-building, with a red tin roof and its own wrap-around porch

*Out-building includes outdoor grilling area and sink – PERFECT FOR ENTERTAINING

*Out-building can be used for many things such as flex space, additional storage or workshop

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The original home was built in 1946 (1100 sq feet), and in 1985 the home owner added 1700 square feet in the most efficient and polished manner to maximize the use and flow of the home. A part of the Old Village history with all of the features of today’s lifestyle. Enjoy all that makes the Old Village so special: walk to Alhambra Hall and park, Pitt Street Pharmacy, or the Farmer’s Market. Go fishing at the Old Pitt St. Bridge or kayak from the public launch site at Shem Creek. Visit the dog park or play tennis on the courts, steps from your front door! Golf cart to many of the local shops and restaurants, including Shem Creek. Award winning Mt. Pleasant Academy and Moultrie Middle Schools are an added bonus! Located just minutes from downtown Charleston and Sullivan’s Island, making this an ideal spot to live! Don’t miss your opportunity to find your special Old Village lifestyle home!

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For more information on this beautiful home, contact Jackie Kelly at jackie@thecassinagroup.com or 843.991.9111.  .

Under Contract in 1 Day: 1479 Seminole Street, Old Mt. Pleasant

 

 

My listing at 1479 Seminole was priced to sell and went under contract in 1 day!

The real estate market is hot right now! Homes that are priced right are flying off the shelf. Contact me if you are looking for a home in the neighborhood or visit, www.SearchOldVillage.com.  It is imperative during this fast-paced market that you team up with a savvy REALTOR® who knows the market, can help find homes before they list, and can help navigate multiple offers for homes that come on the market for a reasonable price.  I am happy to help!

Jackie Kelly, Realtor®, jackie@thecassinagroup.com

 

Experience Sells!

2016 was a great year for Charleston real estate and for me professionally.  And I am thankful to my clients and friends for helping me achieve my goals!
  • I am thrilled to have SOLD MORE HOMES than any other real estate agent in the Old Village/ Old Mt. Pleasant neighborhood in 2016!*
  • I was awarded the 2016 Moultrie News BEST OF THE BEST REALTOR®!  
  • I achieved the Executive Level of The REALTORS® of Distinction Award, which is their highest tier and recognizes the top producing Charleston REALTORS®.

With 6,000+ REALTORS® in the Lowcountry, it is a given that you have a friend or family member who is licensed to sell.  But you need to ask yourself… Who has the experience and knowledge to get the deal done?  And who can provide the proper guidance for a  smooth transaction while maximizing my financial gain?

The decision of who represents you in the sale and or purchase of your life’s biggest asset needs to be taken seriously.  And as you know, I live in this neighborhood, specialize my business here, and I have been a top producer in this area for many years.  
 
I love what I do, and work hard everyday to provide superior service, expertise and advisement to my clients.  And I am thankful to have this opportunity!  If I can help, I am happy to do so.  To learn more, check out my website at www.SearchOldVillage.com or email me at Jackie@TheCassinaGroup.com.
 
*Per Charleston Trident Association of Realtors MLS statistics pulled on 1/13 /17

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Upcoming Events at the “Little Library”

We just love the little library, located at 430 Whilden Street in the Old Village!  Did you know they offer tons of fun activities?  Here is their upcoming schedule…

*** Star Therapy Dogs

Saturday, November 5, 2016

10:30 am

Come read a book to a furry friend. All ages welcome.

***Family Storytime

Thursdays, November 3, 10 &17, 2016

11:00 am

Come enjoy fun filled entertainment for all ages!

***Fall Concert Special

Tuesday, November 8, 2016

11:00 am

Looking for something to do on your day off from school? Join famed musician, Roger Bellow, as he performs some of your favorite songs…You can even sing along!

***Thanksgiving Turkey Craft

Saturday, November 12, 2016

10:30 am

Come create a turkey craft that shows what you are thankful for.

Children of all ages welcome!