Briggs Freeman Sotheby’s International Realty | Top Predictions for 2018

Slower home-price growth, continued inventory issues and evolving design trends are ahead, according to top economists and housing experts of Inman, a leading source of real estate industry information. Here, just five predictions for the 2018 housing market. The agents of Briggs Freeman Sotheby’s International Realty can share even more.

Inventory shortages will drive the housing market. Svenja Gudell, chief economist at Zillow, says low inventory will continue to increase home prices and serve as a barrier for first-time homebuyers who struggle to save for a down payment.

Builders will turn their focus to entry-level homes. Economists have said that increased residential-housing starts, especially at the starter-home level, are key to lowering home prices. National housing starts have been well below the 50-year average of 1.2 million, but builders are expected to finally answer the call for more affordable options.

Millennials will move to the suburbs. With access to new entertainment and shopping options and robust job opportunities, many millennials would now rather live in suburban centers. Gudell says that more 25 to 34 year-olds will move outward in search of more-affordable home prices.

Baby boomers and millennials will drive home design, just as they are driving the housing market. New starts and renovated homes will feature designs that appeal to both millennials and boomers, such as wide hallways that can accommodate both strollers and/or wheelchairs.

Homes prices will continue to grow, but at a slower pace. Economists have used the word unstoppable to describe the current market, which has been full of record-breaking home-price growth. In 2018, expect prices to climb 4.1 percent, 1.1 percentage points higher than the normal annual appreciation, but slower than the current annual pace of 6.9 percent.

To see all the homes, ranches and land offered by Briggs Freeman Sotheby’s International Realty in North Texas and around the world visit briggsfreeman.com.

This story was originally published December 17, 2017 at 12:00 AM with the headline "Briggs Freeman Sotheby’s International Realty | Top Predictions for 2018."