Cape Coral-Fort Myers has been named among United States property hotspots for 2018.
The city came 61st for sales and price growth in the 2018 National Housing Forecast, says the realtor.com website.
Prices are expected to rise by 3.99% in 2018 in Cape Coral-Fort Myers. In addition, sales are likely to increase 1%, according to the report.
Across the nation, new single-family home starts and sales are expected to rise by a healthy 7%. Existing home sales are forecast to increase 2.5% to 5.60million homes. This is in-part to inventory increases, compared to 2017’s 0.4% increase or 5.47 million homes.
The Cape Coral-Fort Myers price rise prediction is 0.79% ahead of the national average forecast.
Possible property trends for 2018 U.S. market
Realtor.com has picked out four possible trends for the 2018 U.S. housing market:
- Inventory starting to increase– In August, the U.S. housing market began to see a higher than normal month-over-month deceleration in inventory that has continued into fall. Based on this pattern, realtor.com projects U.S. year-over-year inventory growth to turn positive by fall 2018, for the first time since 2015. Inventory declines are expected to decelerate slowly throughout the year, reaching a 4% year-over-year decline in March before increasing in early fall, after the peak home-buying months. Most growth is expected in homes above $350,000. Recovery for starter homes is expected to take longer because their levels were significantly depleted by first-time buyers.
- Price appreciation to slow –Home prices are forecasted to slow nationally from an estimated 5.5% in 2017. Most will be felt higher value homes as there is more inventory and fewer buyers. Entry-level homes will continue to see price gains due to the larger number of buyers that can afford them and more limited homes available for sale in this price range
The importance of millennials
- Millennials to gain market share – Although millennials will continue to face rising interest rates and home prices, they are set to gain mortgage market share in all price points, due to the sheer size of the generation. Millennials could reach 43% of home buyers taking out a mortgage by the end of 2018, up from an estimated 40% in 2017. With most millennials expected to turn 30 in 2020, their homeownership market share is likely to rise further. Millennials are the driving force in the housing market.
- Southern markets predicted to lead in sales growth– Southern cities are anticipated to beat the national average in home sales growth in 2018. This can be attributed to healthy building levels combating the housing shortage. With inventory growth just around the corner, these areas are primed for sales gains in years to come.Realtor.com uses data on the housing market and overall economy to estimate values for these variables for the year ahead. The forecast result is a projection for annual total sales increase (total 2018 existing-home sales vs. 2017) and annual median price increase (2018 median existing-home sales price vs. 2017).