Soaring home prices have priced out many people from the housing market, especially millennials. According to Realtor.com's 2018 Housing Market Forecast, that could all change next year.
Realtor.com predicts that inventory issues will turn around, helping to slow rising home prices. They have already seen improvements at the end of 2017, and expect new construction to improve inventory issues even more.
Danielle Hale, Chief Economist at Realtor.com, discusses the other forecasts Realtor.com is making for 2018. They believe Southern cities will lead the country with the highest growth rates.
Hale notes that nothing is for certain, especially given the proposed tax reform bills in both the Senate and the House. If those proposals pass and are signed into law, they could have significant impacts on incentives to move and buy a new home.
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It's a tough time for the job market. Amid wider economic uncertainty, some analysts have said that businesses are at a “no-hire, no fire” standstill. At the same time, some sizeable layoffs have continued to pile up — raising worker anxieties across sectors. Some companies have pointed to rising operational costs due to U.S.'s new tariffs, while others have redirected money to artificial intelligence investments. Workers in the public sector have also been hit hard. Federal jobs were cut by the thousands earlier this year. And many workers are now going without pay as the U.S. government shutdown has now dragged on for more than a month.
