2018 is potentially shaping up to be a great year for the economy. However, there are some things that are ahead that we will ALL need to pay attention to and to have an idea about, so make sure you are working with a true professional REALTOR. The following is how we at Brooke Cashion and Associates see real estate shaping up in our region of NC - Winston-Salem, Greensboro, High Point and Kernersville - the Piedmont Triad.
At the Allen Tate Companies, we are fortunate to have outstanding and experienced corporate leadership which is lead Pat Riley, our President and CEO. Recently, Pat put together the views of Allen Tate Companies on how things are coming together for 2018 in NC and SC. That short clip is below and well worth your time; pay special attention baby boomers, millennials, renters and anyone looking to sell your home.
At Brooke Cashion and Associates-Allen Tate, we would also add a four thoughts, particularly as it relates the Piedmont Triad region.
-Housing Inventory - it is still tight and will likely stay that way for a while. At the end of December 2017, there were approximately 5600 homes on the market in the entire TriadMLS - that is down approximately 20% from the end of 2016 and is currently about a three month supply. Home prices are rising especially in the $125,000-$204,000 range. What this means is that now is a good time to make a move upward where there are more supply options. Waiting until the spring market will likely put you in a less competitive position as there should be more inventory in this range to choose from, so if you have your home in good shape and move-in condition no would be a good time to get it on-the-market.
-Interest rates - we constantly stay abreast as to what mortgage rates and the mortgage application numbers are. As Pat mentioned in the video clip, mortgage rates are likely to go up. We have already started seeing that, as currently a 30 year fixed is between 4-4.5% depending on loan amount and credit score. We think we will be somewhere around 5% at the end of 2018 so again, if you want to move, now is a good time.
-Tax Reform - we are hopeful and optimistic about the tax reforms that were signed before Christmas 2017. It is very difficult to look at each section of the bill individually and say this or that is going to happen, so it is our belief that it needs to be viewed as a whole and therefore, we think that positive outcomes are ahead. Also, a few years ago, the state of North Carolina reformed the state code so in conjunction with those lower rates, which have started kicking in and still some homeowner and business protections, North Carolina and our area are poised for growth. We are considered one of the fastest growing states in the country and the population is expected to be over 12 million in a few short years so therefore, we are hopeful this is good news for real estate, however, we need to see improved inventory numbers as well.
-Economic Development - our area has positioned itself very well for growth opportunities. Political leaders, economic development leaders and others have come together in a positive way to help our region better compete. We think a big announcement could be on the horizon so we are again optimistic about our region's future. We are seeing lots of road construction, lots of focus on workforce development and an improved labor market. All of this helps with the real estate market.
Thank you again for all of your support, help and guidance. Remember, these times call for professionals and those who work hard to be educated in this complicated field. Make sure you are calling on someone you know that can handle and understand a complicated environment and give you the best and the most professional advocacy and be that trusted advisor.
Happy 2018!
**This blog and vlog about the market of things is intended to be accurate but any time you look into the future, things can change.**
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