Market Update And Predictions For 2018
3 reasons why Learning about the real estate market matters:
- Local real estate market stats influence the value of your home. If home prices are high in your area then chances are your home may also be worth more.
- It allows you to make the right decisions when buying or selling. Staying up to date will allow you to decide if it is the right time to buy / sell.
- Allows you to get the full economic picture. We can tell if a particular market is a buyers’ or sellers’ market and what economic trends may impact future housing prices and how your home compares to similar homes in your area.
How 2017 finished off!
The average selling price as we finished the year in December is $575,064, a 1 per cent increase from the $574,901 average selling price in November. December also saw a slight increase over the average of $570,957 during the same period in 2016.
Durham finished 2017 with a balanced market – a market ideal for both buyers and sellers.
Inventory of new listings in Durham increased to 711 in December 2017; this represents a 73 per cent increase from the 411 in December 2016 so buyers have more choice and more freedom of time to make decisions.
Market Insights for 2018:
The market will continue to moderate and become more temperate. Home Prices will continue to grow but at much smaller rates than those experienced in previous years.
Experts still predict an increase of 1.2% – the smallest increase since 2009. Comparatively in 2016 we saw an increase of 9.6%.
The levelling off of the market was brought about by new housing regulations (including taxes on foreign homebuyers and mortgage stress testing), increased interest rates and decreased affordability in many areas.
However the most important factor and something essential to keep in mind is that real estate is cyclical. The red hot market experience in spring of 2017 was always going to level off because it was not sustainable.
Many potential buyers were waiting for this levelling off before purchasing in the hope that prices would drop and become more affordable.
A moderate market in 2018 will mean many potential buyers who have been eager to purchase but pushed out by high prices will have a chance to buy the homes they want at better prices. And sellers remember your purchasing bracket will follow suit as it is all relative.