2018 Real Estate Trends You Should Know
The real estate market lives in perpetual motion, shifting and adapting to the current market trends. Agents need to look ahead to stay relevant in this ever-changing market. As 2018 picks up steam, that market is beginning to take shape. Buyers are on the hunt, and sellers are looking to move on. To help agents stay ahead of the curve, we put together a list of some of 2018’s expected trends in real estate, including buyers taking control, millennials moving on, potential mortgage rate hikes, and more.
Expect to see an increase in demand for communal spaces that enable multifamily co-living. This could manifest itself into homes that accommodate multiple families sharing the same communal spaces, or a push by buyers or renters to move into apartment buildings that feature these kinds of spaces.
2018 will see a continued rise in the demand for short-term rental spaces. Owners of large properties stand to benefit, as will single-family units with spare rooms. You can also expect to see more people renting out their entire vacation homes to families looking to get away. Here are some short-term rental ordinance to review for Davidson County.
Expect more people to downsize as developers build more living spaces that take up less real estate in over-packed urban locations. Micro units, homes that are rooms as small as 200 square feet, are becoming popular, coupled with large communal spaces. This trend is just starting to take hold, and looks to continue into 2018 and beyond.
Return of the Investor
The negative views toward those investing in real estate to make a living have started to fade. At the same time, larger entities are entering this market. Expect to see more homeowners entertaining offers from investors while they look at offers from buyers.
Millennials Move Out
They won’t live in their parents’ homes forever. Expect to see a new wave of buyers from this oft-misunderstood generation. This year could see them taking advantage of the tiny home movement, investing in real estate, or joining forces with friends and family to expand on a co-living situation.
We will see a dip in home-price appreciation in 2018, as projections predict home prices to increase only 4.1 percent after two straight years above 6 percent. One factor contributing to this is an influx of new single-family unit stock, potentially increasing by 8 percent by the end of 2018. This is a welcome relief to buyers in a market that’s been dominated by baby boomers staying in their homes, investors seeing huge returns on rental properties they bought in the bubble burst, and home builders veering toward luxury home builds.