Using new data, experts predict there will be four major factors reshaping 2018's housing market, including increased housing supply, stronger millennial buying power, and rising home sales in the South.
Based on mortgage originations, millennials could make up 43 percent of homebuyers taking out a mortgage by the end of 2018, up 3 percent from 2017. Realtor.com anticipates the housing inventory supply will see an uptick in late 2018, signaling that first-time homebuyers will probably grab a larger market share moving forward.
If a version of tax reform does pass with the current provisions affecting real estate, Chief Economist Danielle Hale says she would expect to see fewer home sales and declining home prices. However, it would be the upper price tiers that would likely be affected the most, in areas with expensive homes and high taxes, such as coastal cities, especially in California.
