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What Will the Real Estate Market Look Like in 2018?


What you need to know about the New England real estate and lending market.

What Will the Real Estate Market Look Like in 2018?

February 05, 2018

At the start of any New Year everyone likes to make new resolutions. Whatever your resolution is, we wish you all the best! But, if your resolution revolves around real estate and potentially buying or selling a home, we want to help you meet that goal.

When we look back on the last year, there’s been lots of changes that could have a potential impact on the real estate market for 2018. That being said, you might have a lot of questions such as, ‘How will the new tax bill affect the market?’, ‘Are housing prices going to continue to climb?’, or ‘When will be the best time to buy or sell?’

While we can’t look into a crystal ball and give you the exact future, we can help guide you and give some of our best predictions for 2018.


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In 2016 home prices rose 6.3% according to the Federal Housing Finance Agency, and 2017 is also looking to be above 6%. But for 2018, this number is expected to be more around 4.1%. One possible factor of this slowdown could be that economist expect more construction of single-family houses to rise in 2018. This is good news for first time home buyers as prices are expected to decelerate this New Year.


Supply will begin to Meet Demand

For the last few years, home buyers have been struggling to find houses for sale. While there are several major factors contributing to this problem such as home builders making more profit from expensive houses than entry-level houses, and baby boomers being content to age in their homes instead of downsizing, there seems to be hope for 2018. Later in the year, we could start to see some growth in inventory to start meeting the demand.


New Tax Reform Will Impact the Market

One of the biggest questions on buyers and sellers’ minds is how the new tax reform will affect the real estate market. Effective in 2018, the new law reduces the maximum amount of mortgage debt to acquire a first or second residence. In the past, you could claim itemized interest expense deduction worth up to $1 million. With the new bill, this has dropped to $750,000. The new tax law also put a $10,000 cap on the amount of state and local taxes that can be deducted from the federal return. This includes property tax.

Now you might be wondering, what does all this mean for the real estate market? It’s hard to say specifically where the market will go, but it is expected that the steady increase in the priciest housing markets is expected to slow in coming years. However, from a prediction standpoint, much of the market is going to be a wait and see scenario.

We hope this helped to clear up some questions you may have about the real estate market. If you have more questions about the real estate market and want to know more about your options for 2018, please feel free to contact one of our professionals at New England Title and Escrow.



Massachusetts Real Estate Attorney | New England Title & Escrow Services

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