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!

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.

Simmons KitchenSimmons Exterior FrontSimmons BackyardSimmons LivingSimmons BathSimmons PorchSimmons Back PorchSimmons Backyard 2

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.

 

 

 

 

JUST SOLD IN THE OLD VILLAGE/ OLD MT. PLEASANT

I have had the best time helping folks find their new homes in our neighborhood!  Whether you are a buyer or a seller, I am happy to help you find the perfect match.
1479 Seminole Street
4 beds, 2.5 baths  
$706,000
1470 Seminole Street
4 beds, 4 baths
$775,000
211 Haddrell Street
3 beds, 1 bath
$645,000
212 Freeman Street
3 beds, 2.5 baths
$784,000
845 Marsh Grove Avenue
4 beds, 2.5 baths
$1,071,250

 

Please let me know if I can help with your real estate needs!  To see all homes for sale in the neighborhood, visit www.SearchOldVillage.com and if you would like to receive a listing homes SOLD in the area, email me at Jackie@TheCassinaGrouop.com

~Jackie

 

 

2017 BEST OF THE BEST! Thank you!!

Jackie Kelly Moultrie News 2017

I’m so appreciative to those who voted for me again this year!  It is simply an honor and I am so fortunate to be able to help families find their homes in this very special town!  xo

Open House: 1470 Seminole St.- Old Mt. Pleasant- This Sat & Sun from 10-12pm

Please come by and see this beautifully renovated home!
Open House will be this Saturday, July 29 from 10am-12pm and
Sunday from 10am-12pm.
Seminole 1
1470 Seminole Street   ::   $778,500
*Everything is brand new in this fully renovated 4 bedroom, 4 bath, 2000 square foot home.  
*Lovely front porch
*Open-flow Dining/Kitchen with Shadow Storm Marble island, gas range with custom hood, stainless undermount sink, new cabinets, new stainless appliances, decorative light fixtures and pantry
*Beautiful Oak Flooring throughout the home
*Dining/ kitchen area leads to a fantastic screened porch- also accessible from the private Master Suite
*Separate master suite with vaulted ceiling and walk-in closet.
*Master bath includes double Quartz vanity, oversized stand-up tiled shower with bench seat.
*3 additional bedrooms are spacious (one of which could double as a second master suite)  
*3 additional bathrooms for a total of 4 *Walk-in laundry/ mud room with Barn Door
*Private fully fenced, back yard with new landscaping and storage shed
*Hardiplank exterior
*New roof
*New plumbing and electrical throughout
*New tankless hot water heater
*Wood-planked ceiling in main living area
*Closets feature built-in wood shelving
*Outdoor shower with hot and cold water
*Flood insurance not required
Seminole 2Seminole 6Seminole 3Seminole 4Seminole 5

16 Years of Solid Growth in The Old Village/ Old Mt. Pleasant

ov stats

AVERAGE SALES PRICE IN THE OLD VILLAGE/ OLD MT PLEASANT, FROM 2001-2016, PER THE CHARLESTON MULTIPLE LISTING SERVICE

The US housing market seems unstoppable, and our neighborhood is no exception.  Prices continue to rise, demand is strong, inventory is tight, interest rates are low and new construction is in full force.

Sales prices in the Old Village/ Old Mt. Pleasant are at an all time high, with the average sales price reaching $685,000 in 2015 and a staggering $743,000 in 2016.  That is a considerable jump from $455,000 in 2014.  Not to mention that price has more than doubled from the 2001 average of $370,000.  These stats show a solid investment market based on a steady increase over a long period of time.

So what does it all mean?

For sellers, it all sounds good, right?  But pricing your home accurately is still the key. The average “Days On Market” for homes sold in the OV/ Old Mt. P was 64 in 2016 and 65 in 2015.  When a home is priced under market value, multiple offers typically happen and can drive the sales price up.  And if priced over market value, the home will sit on the market with little to no activity after about 120 days.

For Buyers?  According to Chief Economist Jonathan Smoke, of Realtor.com, “Buyers who are able to land the home of their dreams can reassure themselves that their investment is likely to be a solid one—especially in our hottest markets, where homes are selling fastest and there’s the most demand.”

I always say it’s best to watch the market on a local level, and watch the prices over a long period of time.  And when you are ready to buy or sell, it’s imperative to team up with a savvy REALTOR® who understands your market.  If I can help you, please let me know.  To see all homes for sale, visit http://www.SearchOldVillage.