The U.S. housing market will develop in favor of sellers for 2018, as prices are expected to increase 4.6%, according to Fitch Ratings.
Increasing home prices would be the common theme among the Top 10 states, which would be led by Nevada and Texas. If you plan to sell your apartment in Las Vegas or residential real estate in Rockport, Texas, Rockport Properties, Inc. and industry experts noted that this year may be a good time.
The median home prices in Nevada currently amounts to more than $285,000. Fitch expects home prices in the state to increase around 5.8% in the next 12 months, driven mostly by the market in Las Vegas. S&P/Case-Shiller’s Home Price Index (HPI) showed that prices in the city have risen 8.6% in the most recent 12 months.
In Texas, housing sales would increase by 6% this year. This indicates that demand for properties remains strong. Fitch attributed the expected growth to lower taxes and cost of living in the state, which prompted many companies to do business there. North Texas home prices amount to almost $340,000.
Rapid Price Growth
Based on the HPI, homeowners in North Texas, particularly in Dallas, noticed a 7% increase in home values over the last year. S&P’s David Blitzer said that Dallas is now part of cities where price growth exceeded the rate of inflation.
Some economists cited low unemployment, salary growth, and attractive interest rates as the main reasons for a higher demand. However, many buyers still chose not to pay a hefty amount for homes, so the price appreciation has slowed down since early 2017.
An increase in demand for homes often leads to higher prices. This provides sellers with an advantage of putting their asset on the market, yet finding a willing buyer to agree on a high price will be a common challenge for this year.