The global real estate market at the end of the previous year has left us a somewhat characteristic constellation of things. Namely, due to some fluctuations and trends regarding real estate prices, homeowners are less likely to decide to put their current residents out there for sale. This is mostly due to fear of not being able to buy a new house after selling the current one.
This lead to a shortage of property for sale available to those who want to become homeowners, which is a whole new generation stepping onto the market over the last few years and will progress to do so during the new 2018. Year. This imposed some specific approaches to everyone interacting at the real estate market and suggested that new year will bring some predictable trends at the global real estate market. Spokane, Washington real estate market follows global trends proportionally.
Probably the worst position in the real estate market will be assigned to first-time home buyers without current property they can sell to invest that money further into new real estate.
This usually includes a profile of young couples looking for their first home. The prices are pushed up by an overall shortage of inventory, and without loans, these people are the least competitive in the market.
The above-mentioned class of first-time buyers will mostly flock to suburb zone. Due to prices being too high for them in downtown among brand new buildings and a shortage of inventory at the same time, these people will opt for cheaper residences located near their urban jobs, but not in the mere downtown. Suburbs are predestined for millennials.
Fluctuations of property prices at the global real estate market caused declining in inventory and deficit of property for sale. This will inevitably lead to the growth of home prices, but probably at somewhat slow pace. However, due to very inconvenient conditions for selling, homeowners will rather opt for reconstruction and remodeling than for selling.
Once homeowners invest into the remodeling of their residences, they’ll be even less likely to sell. And it will worsen the trend of inventory shortage and change the strategy for builders and investors.
Increased rate of building annually will eventually resolve the inventory crisis. But so far most builders were investing into lucrative area of high-priced real estates. However, 2018. The year will adjust this strategy a bit because there’s. An obvious need at the market for affordable homes for first-time buyers. Builders will probably respond to this growing demand. Thus focus on the building overall will be relocated onto these forms of real estates.