Before the passage of the tax bill, experts were anticipating more of the same from the housing market in 2018. The limited supply of homes for sale was the biggest issue facing the market last year and it will continue to be a problem, particularly in the entry-level market. Although some are predicting those constraints to ease, the persistent low supply is expected to keep driving prices higher. Mortgage rates were fairly static last year but most experts see them rising in the coming year.
Because the tax bill was passed after the real estate entities put out their 2018 forecasts, their projections below don’t include what impact, if any, several provisions in the bill — such as the caps on the mortgage interest and property tax deductions — will have on the market. Some experts are anticipating prices won’t rise nearly as fast because of the new law. Others say it will help first-time home buyers enter the market.
Here is a roundup of their forecasts and what they expect the major trends to be in the coming year: