Real Estate 2018: What to Expect
As we head into a new year, the most common question I receive is, “What’s the outlook for real estate in 2018?”
It’s not just potential buyers and sellers who are curious; homeowners also want reassurance their home’s value is going up. The good news is that the economy is strong, coupled with strong employment, it is expected to drive continued real estate growth in 2018. However, we anticipate the new mortgage stress test implemented January 1st will have some impact – as Buyers buying power will be diminished, and these new rules will affect all Buyers who are seeking a (non CMHC) loan with more than 20% down.
HOME
VALUES WILL CONTINUE TO RISE
Experts agree that home prices will increase in 2018, but
predict a slower rate of appreciation than 2017.
What does it mean for you? If you’re a current homeowner, congratulations! Real estate proves once again to be a solid investment over the long term. And if you’re considering selling this year, there’s never been a better time. Contact me to request a free Comparative Market Analysis to find out how much you can expect your home to sell for under current market conditions.
If you’re in the market to buy this year, there’s good news for you, too. Although prices continue to rise, the rate of appreciation has slowed. Still, don’t wait any longer. Prices will continue to go up, so you’ll pay more six months from now than you would today. I am happy to set you up with a free, no-obligation property search so that you get notified about listings that meet your criteria as soon as (or before) they hit the market.
INTEREST
RATES WILL RISE
No one knows exactly what will happen with mortgage rates this year, it is anticipated that they could rise to 5% by the end of 2018.
What does it mean for you? If you’re in the market to buy, act now. Rising interest rates combined with the new mortgage rules will further decrease your purchasing power
And if you’re a current homeowner who is considering refinancing or a home equity loan, don’t wait. I can help you estimate your property’s fair market value so you’ll be prepared before contacting the Bank or Mortgage Broker.
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2018 ACTION PLAN
1. Get pre-approved for a mortgage. If you were pre-approved in 2017 – it is imperative that you go through the process again with the New Mortgage Rules applied. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly. 2. Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you. 3. Come to my office! The buying process can be tricky. I am happy to guide you through the process. I can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!
If you plan to SELL this year:
1. Call me for a Comparative Market Analysis – they are always “On The House” (free)! A CMA not only gives you the current market value of your home, it’ll also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property … and it will help us price your home correctly once you’re ready to list. 2. Prep your home for the market. Most buyers want a home they can move into right away, without having to make extensive repairs and upgrades. We can help you determine which ones are worth the time and expense to deliver maximum results. 3. Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage ... and get you one step closer to moving when the time comes! |
HELPING
IS WHAT I DO!
While national real estate numbers and predictions can provide a “big-picture” outlook for the year, real estate is local. And as local market experts, I can guide you through the ins and outs of our market, and the local issues that are likely to drive home values in your particular neighborhood. If you have specific questions, or would like more information about where we see real estate headed in our area, please give me a call! I would love to discuss how issues here at home are likely to impact your desire to buy or a sell a home this year.
