Monday, December 4, 2017 / by Josh Cooley
A Look Back at the 2017 Real Estate Market
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It’s time to take a look back on the 2017 real estate market as the year winds down to an end.
The 2017 real estate market ended up fairly strong, but not as strong as it started. With limited supply in the first quarter, prices soared.
The largest month-over-month increase in sales price came in March and April, where the increases were 6.3% and 8.2%, respectively. Therefore, an annual appreciation of 6.5% doesn’t sound as impressive by comparison.
Retrospectively, the 2016 and 2017 real estate markets were much more similar than was predicted. There were 5,163 sales in 2016 here in Lane County. The number of sales for 2017 is expected to be about the same once the final figures come in.
The number of homes listed in 2016 and 2017 also ended up being very similar. The same can also be said of the number of homes sold. However, the average sales price was not so similar.
As we approach the new year, what can you expect from 2018? After speaking with top agents in different active markets around the country, I’ve seen one major consistency. The upward trajectory on prices has really slowed down. Inventory will likely pick up slightly, but there also won’t be too many new buyers coming into the market to level that out.
As far as home values, we can expect to see an overall increase of about 5%. As an example, a $300,000 home today will likely be worth $315,000 at the end of 2018. If interest rates also rise by 1% as we expect them to, there will be about a $200 per month difference for the buyer.
Going into the new year, I would advise buyers to buy sooner rather than later. If you wait, it’s going to cost you more than it would to purchase a home right now.
I would give similar advice to sellers. If you plan to list in 2018, I recommend putting your house on the market in the first quarter.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.