What to Expect From the 2018 Real Estate Market

How is the Birmingham real estate market? I’ll go over market conditions and what to expect from the 2018 market today.

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Let’s take a look at the state of the market and what those market conditions mean for real estate in 2018.

Inventory reflects the number of homes on the market. Here are the inventory levels for December 31 over the course of the last five years: 

• 2013 - 7,439 homes
• 2014 - 6,568 homes
• 2015 - 6,677 homes
• 2016 - 6,190 homes
• 2017 - 5,304 homes

As you can see, inventory dropped significantly from December 31, 2016, to December 31, 2017. That means there has been a significant drop in the number of homes available for sale. 

If you are a seller, now may be a good time to put your home on the market. Homes are selling quickly if they are priced and positioned properly in the market.

Of those 5,304 homes, 1,000 of them are under contract in some form or fashion. 

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Now is a great time to enter the market as a buyer or a seller.

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Another major factor in the real estate market is mortgage rates. Interest rates continue to skyrocket. As rates go up, your buying power goes down. Rates have gone up three-eighths of a point over the last 20 days, which would significantly impact your mortgage payment and your buying power in the real estate market. Check out this attachment for more.

If you are a seller, that means that your buyer pool may be dwindling.

That said, now is a great time to enter the real estate market as a buyer or a seller. If you have any questions, just give us a call or send us an email. We would be happy to help you!