Survey: Realtors Expect Home Prices to Increase Three Percent in 2018

In a December 2017 survey of realtor confidence, the median response was that the price change for homes over the next 12 months will be a 3.1 percent increase.

Respondents in states with high property tax rates like New York, New Jersey, and California that are the most affected by the Tax Cuts and Jobs Act provisions capping itemized deductions on property and state and local taxes anticipate a modest price appreciation of two percent at the most, if there are any changes at all. Respondents in the National Association of Realtors' survey from Washington and Nevada had the highest median expected price growth of more than five to seven percent.

With the median home price of existing homes at $246,800 in December 2017 (cumulative change of 60 percent since January 2012), and with fewer inventory of homes for sale at their lowest level since January 1999 (3.2 months’ supply), realtors expect prices to continue to appreciate in the next 12 months. In many metro areas, listing prices are up by double-digit rates, as the number of homes listed for sale have also fallen steeply.

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