The real estate sector is one of the primary driving forces behind the growth of the US economy. After some sluggishness in 2017, the US real estate sector is poised to witness certain trends in 2018. Here are the key trends the US real estate is expected to see this year:
1. Rising mortgages rates
Experts in the real estate sector believe that mortgages rates will rise in 2018. This, according to them, will happen due to the interest rates. This change will make real estate more costly for homebuyers. As a result, buyers may not be able to make good deals. However, the good news is that this trend will vanish after the first half of 2018. And the mortgages rates will not increase more than 4 percent on the thirty-year fixed rate.
2. More credit
While mortgage rates may increase, more credit will be available as a result of the somewhat loose lending criterions. The FHA is expected to decrease its fees for first-time real estate buyers. Furthermore, public mortgage corporations may start to back bigger mortgages, which can make it fairly easy for buyers in the top tier market to arrange finance for their deals.
3. More new homes
Even though the latest figures on new home building indicate that homebuilders are avoiding new undertakings, the overall trend in this sector shows otherwise. According to the overall trend stats, new home construction will peak a rate of 1.17 million. This means it will be about 5 percent more than what it was in 2017.
4. Rise of medium-sized cities
Large cities like New York and San Francisco have seen a huge inflow of workers, which has made housing fairly costly in these places. As a result, the new generation prefers to move to medium-sized cities like Fort Collins and Raleigh. These cities offer better housing at affordable prices. To accommodate these young people, developers will be building more new homes in the mid-sized cities.
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