utah real estateThe real estate industry is in a state of constant change, shifting with today’s global events, technological breakthroughs, and financial market fluctuations. As we reflect back on the predicted (and unpredicted) events of the past year and look forward to 2018, we can’t help but wonder what next year might bring for the Utah real estate market. One thing is certain — change is inevitable!

But what change, exactly, can we expect? Something most early forecasters agree on is that home prices will continue to rise. The question is — how much? Current predictions are anywhere from a 3.65% to a 5% increase through July 2018. Housing inventory, price appreciation, and generational and regional shifts are some of the top trends that will shape the Utah real estate market in 2018.

So, whether you are thinking about buying a home or investing in your own real estate empire, you want to be prepared for what lies ahead. Real estate agents, in particular, are faced with the overwhelming task of keeping up with an ever-evolving market and emerging industry trends. Here’s 4 possible ‘game-changers’ to keep your eye on in the coming year.

Inventory Turn-Around

After three years of a steady shortage of homes for sale, realtor.com predicts that the shortfall will finally ease up in the second half of 2018. Once we see inventory start to turn around, there will be plenty of demand to meet the supply (especially in top real estate markets). Good news for Utah — as one of the nation’s hottest real estate markets, it may see inventory recover even earlier. As the market eases, home prices are expected to slow to 3.2% growth year over year nationally

More Mortgages for Millennials

The housing market in 2018 will continue to present challenges for millennials, but many will have success at taking out mortgages on homes at varying prices, and not just starter homes. This is due to both an overall stronger economy and their own career development. Millennials could make up 43% of home buyers taking out a mortgage by the end of 2018, up from an estimated 40% in 2017.

Technology and Silicon-Slopes

With inventory rising, new technologies (and the companies that deliver them) will be in high demand. Utah’s Silicon Slopes is leading the nation in tech growth and shows no signs of slowing. The combination of a strong workforce, business-friendly environment, low operating costs, and proximity to other large markets makes Utah one of the best options in the country for information technology, and many companies will be looking to expand or relocate their business to Utah in 2018.

Tax-Reform Changes

With tax reform now in the Senate’s hands, the proposed overhaul has numerous potential impacts on the Utah real estate industry and the real estate world at large. Low-income housing tax credits (LIHTCs) may be on the docket, along with proposals to double the standard deduction on personal income, alter investment amortization, and get rid of the 1031 tax-free exchange program. These all have the potential to add disruptions and numerous potential ripple effects across the industry.

Remember…Change is inevitable. Progress is optional.  –Tony Robbins

Let’s go!

-The Novation Team