Will the housing market smile on homebuyers or sellers in 2018? According to a report released by real estate portal We Buy Houses.com, 2018 will continue to be a seller’s market in more than 70 percent of suburban markets across the U.S.
The report, which was released on Thursday, indicated that nationally, home prices are expected to rise again in more than 60 percent of U.S. markets, and are expected to stay the same in about 34 percent.
Home prices are expected to rise 4 percent to 8 percent in major suburban markets with a median increase of 5.5 percent, even as home prices are predicted to rise from a median of $248,000 in December 2017 to $262,000 by the end of this year.
In terms of inventory, the report expects lower inventory in over 31 percent of local markets, with inventory increasing in only about 22 percent of the housing market this year. While the cost of labor is expected to rise in around 48 percent of the markets the availability of contractors is expected to remain tight. Cost of materials however will remain the same in about 51.2 percent of the markets.
The report expects Southern U.S. to emerge as the hottest region with local market experts expecting home prices to rise along with the cost of labor and materials, in part due to the residual effects of Hurricane Harvey in 2017. Inventory is expected to remain about the same as 2017, a year in which housing inventory in the South was very tight.
On the other hand, Western U.S. continues to remain the most competitive region with prices in prime suburban markets of San Diego, California and Colorado Springs, Colorado expected to continue their rising streak as inventories remain constrained in these areas.