A New Year is always filled with resolutions; eat less, exercise more, travel frequently. For some, homeownership is the top priority of 2018.

The end of 2017 brought changes impacting real estate trends affecting 2018.

The New Tax Plan

Congress passed and now has made into law restriction on mortgage interest and property deductions. The new law limits the amount of state taxes that can be deducted from federal tax. The law also caps mortgage interest deduction.

These moves will likely limit growth in prices to 1-3%

Hurricane Damage

In 2017, many areas offering reasonable home prices were hit. Harvey, Irma, Maria & Nate hit from the mainland to Puerto Rico. 15 million people were affected and billions of dollars worth of damage took place.

These events have strained building supplies and also homebuilder availability, affecting new home construction.

Mortgage Rates

Wells Fargo is the largest mortgage lender in the country. Their rate currently is at 4% for new purchases. But the rates are going up.

According to the Mortgage Bankers Association, in 2018, rates will go up to 4.6%, while the National Association of Realtors predicts a 4.5% rate.

 

Home Ownership still remains the largest source of wealth for most Americans & remains a critical component of the economy. Use our vast in-depth knowledge at Tarek & Associates to show you the fastest way to building wealth in real estate. +1.949.337.8808