With the new year on the horizon, housing experts are highlighting four major trends they see coming for buyers and sellers in terms of supply, affordability, demographics, and the 'wild card' of new tax law.
The passage and implementation of the Tax Cuts and Jobs Act (TCJA) fueled much speculation and concern regarding its ramifications on housing for 2018. Alas, most taxpayers won't be settling up with Uncle Sam until April 2019 under the new tax rules, and as a result, the impact of the TCJA remains cloudy. Andrew Hanson, associate professor of economics at Marquette University in Milwaukee, Wisc. tells Realtor.com, "I think [TCJA] will affect mostly homeowners and buyers in the upper parts of the distribution. Those who either own or are buying higher-priced homes are going to pay a lot more," yet Hanson predicts that the biggest change caused by the TCJA will be in mortgages, with borrowers less likely to take out big mortgages, "If anyone is going to be upset about the tax plan, it'll be mortgage bankers," he says.
We're entering the home stretch of 2018, when you can actually say, "See you next year!" to someone you'll see in just a few weeks. It's a time to look ahead, to make new plans, to achieve new dreams. And if those dreams include buying your own home, you should keep an eye on the ever-changing tides of the housing market. Now, markets are like the weather: You can't entirely predict how they will act, but you can get a sense of the forces that will push things in one direction or another.
Advertisement
Related Stories
Trade Contractors
Skilled Trades Are Open to Technology, Survey Finds
Amidst the ongoing labor shortage, technology and digital tools can offer labor-saving gains, and the skilled trades are willing to embrace new tech in their jobs
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?