From the looks of it, 2018 is going to be an interesting year for real estate. While it’s common for the market to change every year, this year is unique in that it will be influenced by the tax bill, the Tax Cuts and Jobs Act, which was signed into law on December 22nd.
As one of the most comprehensive modifications to the federal tax code since the Reagan administration, there’s no denying that this tax bill will have a huge impact on the housing market, as well as the economy as a whole.
Here are some ways that the housing market could change as we venture further into 2018:
1. Changes in Home Prices
Depending on where you live, the prices of homes in your local market are expected to change due to the tax bill and the Federal Reserve increasing interest rates. In New Jersey, Washington, DC, and New York, the prices are expected to drop anywhere between -6.2% to -4.8%, and in Florida, prices are posted to jump an estimated 4.4%.
2. Mortgage Rates Are Expected to Rise
Because of the Federal Reserve’s plan to increase interest rates, and partly because of the new tax bill, mortgage rates could reach as much as 5% by mid-2018.
3. Southern Housing Markets Will Continue to Grow
While there’s only expected to be 2.5% growth nationally in the property market, Southern markets like Deltona-Daytona Beach, Florida, are expected to more than double in 2018. In fact, nine cities in Florida are ranked among the top 100 American metropolitan areas with housing markets expected to grow in sales and price.
These cities are:
- Deltona-Daytona Beach-Ormond Beach (Ranked #3): 5.47% sales growth and 6% price growth.
- Lakeland-Winter Haven (Ranked #5): 3% sales growth and 7% price growth.
- Miami-Fort Lauderdale-West Palm Beach (Ranked #14): 3.10% sales growth and 5.28% price growth.
- Orlando-Kissimmee-Sanford (Ranked #17): 1.24% sales growth and 6.88% price growth.
- Palm Bay-Melbourne-Titusville (Ranked #20): 1% sales growth and 7% price growth.
- Jacksonville (Ranked #21): 4.73% sales growth and 3.20% price growth.
- North Port-Sarasota-Bradenton (Ranked #25): 3% sales growth and 4.50% price growth.
- Tampa-St. Petersburg-Clearwater (Ranked #29): 1.38% sales growth and 6% price growth.
- Cape Coral-Fort Myers (Ranked #61): 1% sales growth and 3.99% price growth.
Click here to see a list of all American cities expected to grow over the course of this year.
If you’re looking to buy or sell your home in Florida, the Edge Group at Keller Williams can help you get the most value for your money.
We have five offices that service markets in Florida’s most active cities, including Tampa, Jacksonville, Ft. Lauderdale, Orlando & The DeBary Area. Contact us today to get started towards buying your dream home or selling the one you already have.