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5 Real Estate Trends to Watch in 2018

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  1. Supply will finally catch up with demand, but not until the fall of 2018. After 3 years of inventory shortage, the economics team predicts inventory growth. Construction is the engine that will bring new homes to the market, adding inventory and incentivizing current home owners into trading up into new homes. Home sales should increase about two percent in 2018. With that said, tax reform and the proposed changes to the capital gains exemption on profits from the sale of a home could impact sellers and thus the home inventory market.
  2. According to top economists at the Bankers Mortgage Association, mortgage rates are expected to reach 4.6% next year and above 5% in 2019 and 2020. While new mortgages will grow, refinances are expected to continue dropping as interest rates rise.
  3. Due to a strong economy and career development, millennials will make up 43% of new home buyers in 2018. This is the largest generation in U.S history and they are motivated to put down roots, start families and purchase homes.
  4. Millennials, Baby Boomers, and seniors will prefer urban, walkable locations, all within easy access to their jobs, homes, entertainment, public transportation, and other amenities.  
  5. Technology is no longer considered a rare luxury but a part of a full and convenient life. With technology at the heart of virtually everything we interact with on a daily basis, there’s ample reason to believe that the Smart Home Technology trend will continue in real estate. This expectation is spurring homeowners to consider renovations that bring the essence of the smart home to the market. Learning thermostats, USB hubs, and automated home functions will continue to gain popularity.


Pamela Sclafani is the Marketing Manager for Coldwell Banker Upton Massamont. She lives in the Pioneer Valley and enjoys everything it has to offer, gorgeous scenery, hills and mountains for hiking, lakes for paddle boarding, the change of seasons, and the close proximity to Boston and New York.


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