Forecast Calls for Slight Gain in Home Sales

MARCH 2018 - A glimpse at the current state of the housing market.
 
Even with interest rates rising, home sales are expected to be up slightly in 2018, boosted by job and wage gains. Tax law changes may dampen demand for upper-tier homes.

 

Supply and Demand for Homes

Low inventory and high demand has bolstered prices however higher prices and and rising interest rates are slowing demand.

 

Fewer, Less Generous Offers

The typical seller at all price points continued to see multiple offers at higher than asking price in the second half of last year, but it's not clear for how much longer that will be the case, because the trend lines are pointing down.

 

Twin Cities Supply and Demand:

The rising prices, rising interest rates and low supply has put a squeeze on entry level buyers in the Twin Cities.  Check out these graphs: http://www.callsarahfirst.com/2018/04/29/existing-homes-real-estate-market-stats-in-graphs/

SOURCES: http://realtormag.realtor.org/sites/realtormag.realtor.org/files/rmo_files/images/2018_mar/mar18_offers.jpg