1. 2017 was a good year for Texas real estate. 2018 could be even better.
- Opportunity: Energy, healthcare, business & professional service opportunities are up throughout the entire state.
- Oil Rebound: The energy sector downturn is mostly over; oil prices are approaching $60/bl+.
- Job Market: The Texas job market will continue to expand. Professional forecasts are around 2.3%, or even higher.
- Population: Texas population will continue to grow.
- Millennial Demand: Millennial demand will continue to increase.
2. New housing issues will develop.
- Shifting demographics: we will continue to see a change in consumer behavior, generational life cycles, and attitudes/preferences towards the housing market and real estate process.
- Affordability: Income growth vs. price changes continues to be an issue. Dallas-Ft. Worth has seen, and will continue to see, high amounts of appreciation due to the massive population increase and job opportunities brought to North Texas.
- Regulatory: Federal, state, and local policies are changing regarding real estate, and the market will make adjustments to these policies.
3. Interest rates & development are top of mind.
- Mortgage Rates: Estimated to rise around 0.5% by the end of 2018.
- Home Construction: Likely to see a slowdown in new-construction opportunities, as significant increases have been noted in the cost of materials, labor, and land.
Overall, it looks like 2018 will continue to be a healthy and productive year for our outstanding real estate market. If you're ready to make your real estate dreams a reality, call RUECKERT + STEWART.
Evan C. Stewart