RISMedia's Real Estate Magazine

JAN 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

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RISMedia's REAL ESTATE January 2018 39 According to a 2018 Housing Fore- cast released last month from Tru- lia, the answer is contingent on many wait-and-sees. Definitive, how- ever, is at least one indicator: the homeownership rate. In a continu- ation of its movement last year, the homeownership rate is expected to gradually track upward in 2018. "Homeownership will continue its comeback story in 2018, as Gen Xers who were hard hit dur- ing the Great Recession become homeowners again, and as more millennials buy homes for the first time," says Ralph McLaughlin, chief economist who developed the forecast, at Trulia. A caveat: Across the board, buyers will contend with high costs, limited options and too-low wages—and mil- lennials even more so. "Homebuyers won't be without challenges, as they'll still face low inventory, slow wage growth and ex- pensive starter homes," McLaugh- lin says. "For millennials, they have the added hurdle of saving enough money to make a down payment and make competitive offers amid rising home prices." Buyers could fare better in some markets than others. Considering economic indicators like employ- ment growth, as well as entry-level supply, Trulia searches and vacancy rate, the forecast's 10 housing mar- kets to watch in 2018 are: 1. Grand Rapids, Mich. 2. Nashville, Tenn. 3. Raleigh, N.C. 4. El Paso, Texas 5. San Antonio, Texas 6. Fort Worth, Texas 7. Austin, Texas 8. Columbus, Ohio 9. Madison, Wis. 10. Cincinnati, Ohio The forecast's No. 1, Grand Rap- ids, is 11 th in employment, 16 th for its vacancy rate (the proportion of for-rent or for-sale supply that is va- cant), and 17 th in share of under-35 households—an indicator of a grow- ing home-buying population. One major what-if? Tax reform. If the mortgage interest deduction (MID) is capped at $500,000 (as proposed by the House plan at press time) and the property tax deduction is capped at $10,000 (as proposed in both the House and Senate plans at press time), the burden will be higher for homebuyers along the Cal- ifornia coast and in the Northeast. A broader consequence could include an easing of existing-home sales, home prices and housing starts, the forecast predicts. RE For more information, please visit www.trulia.com. Suzanne De Vita is RISMedia's online news editor. Email her your real estate news ideas at sdevita@rismedia.com. 10 Housing Markets to Watch in 2018 By Suzanne De Vita D windling inventory, high demand and even higher prices. Will the housing market shift this year?

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