2018 Market Forecast
 

We recently had the pleasure of sitting down with Champions School of Real Estate and Dr. James P. Gaines to learn about the 2018 housing market forecast. Here are some important points we took away from that conference.

 

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.