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As we begin a new year, there opportunities for emerging trends become rejuvenated. In many industries, the start of a calendar year means fresh challenges and creative ways of operating. One of those industries, is real estate. Working with the housing markets is always a risk, and industry leaders must look at what trends could impact their business in positive or negative ways. Check out some of the expected and projected real estate trends for this new year.


Supply = Demand

For the past 3 years, the real estate market has seen an significant lack of supply to meet the high demands of buyers. From residential to commercial, available properties have just not been as accessible as needed. Experts are predicting that by the second half of 2018, the supply and demand will be on more of an even playing ground.


The lack of supply has had the most dramatic affect on homebuyers. Those looking to purchase homes are truly struggling to find a property that meets their need and budget. As demand is high, once the inventory increases, the supply/demand needs should be closer to even than it has been since 2015. Some markets, including Nashville and Detroit, saw a huge increase this year as some of the hottest places to buy. Cities with high demands will likely be the first to see the influx of inventory, compared to small towns.



This year, the number of millennials in the market for home buying was higher than ever before. Although their isn’t likely to be a decrease in the housing market prices, the inventory for affordable homes will increase, giving this generation more opportunities. Many millennials are seeing their income at a point where owning a home is possible. A trend that has already begun includes millennials seemingly getting approved for mortgages, and not just ones for “starter homes”. This is the largest generation in U.S. history and they are reaching the age where homebuying is becoming a priority.


Millennials could make up over 40% of the homebuying population, most of them being first time buyers. Should the inventory rebound as predicted, their generation could take up even more of that percentage. Additionally, mortgage rates are expected to hit 5% by the end of the year, so such changes could light the fire for those on the fence about making such a transaction.