Low Stock Levels driving prices up in the US Housing market.
Dwindling inventory will likely remain a top challenge in 2018 for the US housing market, driving prices up while spurring heated competition among Domestic and overseas buyers.
Leading US property site Zillow is predicting more housing shortages in the US in 2018 as money floods into real estate from overseas. In fact, the real estate site predicts homeowners will likely be renovating their homes rather than buying new ones next year as the nationwide “inventory shortage” continues.The company predicts home prices will grow 4.1 percent next year, citing more than 100 housing experts and economists surveyed. Currently, home values are growing at 6.9 percent annually in the US.
The National Association of Realtors also reported a national supply shortage in recent months. Lawrence Yun, the chief economist for the National Association of Realtors, said in a statement “there is not enough listings – especially at the lower end of the market – and fast-rising prices are straining the budgets of prospective buyers.”
In some of the hottest housing markets, the sale-to-list ratio is above 100 percent, meaning homebuyers paid sellers more than the listing price.While falling annual inventory levels are a challenge across all price points, affordable starter homes in particular are in very short supply yet demand remains high. Over the last decade, the share of households that have roommates has gone up from 5.6 percent to 6.6 percent, or about 8.3 million. Some 25 percent of homes sold in two weeks or less in 2017 during “peak buying season” while 20 percent sold in a week or less.
Yet despite the myriad of challenges facing the USA housing market in 2018, Adam Contos, CEO of the real estate company Re/Max, predicts this year will be a booming one for the housing market. Convos states “ As consumer confidence grows, existing home sales could increase in 2018, and possibly even surpass record levels set in 2006”
According to Realtor.com’s 2018 National Housing Forecast, U.S. housing inventory constraints have fueled a sharp rise in prices and made it difficult for buyers to gain a foothold in the market.
“We are forecasting next year to set the stage for a significant inflection point in the housing shortage,” said Javier Vivas, director of economic research for Realtor.com. “Inventory increases will be felt in higher priced segments after home buying season. As we head into 2019 and beyond, we expect to see these inventory increases take hold and provide relief for first-time home buyers and drive sales growth.”
“ So we can see that 2018 is going to be a very busy year for Global Investments but we have been putting plans in place to make sure we stay ahead of the game, we have signed up exclusive listings in cities like Cleveland, Detroit, Toledo, Niagara, Buffalo. We aim to deliver the best priced properties available in the US, all of them tenanted, fully managed with high returns to make 2018 a fantastic year both for our company and our investors. “ Mike Moodie – CEO Global Investments Incorporated