US Housing Market Predictions – Real Estate Market Forecast 2018

Real Estate and Housing Forecast 2018, 2019,  2020

May 18, 2018.  Your Epic report and forecast of the 2018/2019 US housing market offers facts, data, perspective, predictions, price factors, expert opinion and forecasted trends from sources such as NAR, Trulia, Freddie Mac, Zillow, Case Shiller, Trading Economics, and more.

With home prices and mortgage rates on the rise, compare what you’ll be paying vs future mortage rates. Shop for the lowest mortgage rate now.

In this updated report and forecast:

  1. March and April market update
  2. Hottest cities to buy
  3. NAR/Realtor Outlook on the Housing Market
  4. Home price update and predictions
  5. US economic outlook – Tradingeconomics data
  6. Urban Land Institute panel discussion Video
  7. Freddie Mac Forecasts
  8. Jobs report and forecast
  9. Interest rates and mortgage rates
  10. Apartment rental prices and forecast

NAR reports that existing home sales grew in April, 1.1% which is well up from the 1.2% loss 12 months ago.  See the NAR charts below for others stats and which are the hottest markets for April.




Spring Market is Starting Strong

It’s an unusual spring market given the growing purchasing power of home buyers in low to mid market prices. That makes it a great market for those looking to sell their current home to trade up to a better one.

Hopefully you have a top notch strategy to sell your home for a higher price.  Sell it quick, but with a bidding war strategy.

Resale home transactions rose 1.1% in March showing clealy that buyers are hungry to buy.  However, listings have declined 7.2% and prices have risen 5.8% versus  last March.

It’s a sellers market and it will be for some time. If you’re hunting for houses for sale, you’d better have an advanced search strategy.

The dwindling numbers of homes for sale should push prices upward in Los Angeles, San Diego, Boston, Denver, Las Vegas, Dallas, Miami, Seattle, New York, and Houston . It’s all driven by a wildly successful economy and a resistance by local and state governments to support home development in their jurisdictions.




Please feel free to use this material on Linkedin and Facebook. It’s an important topic for buyers and sellers who face a big decision about buying a home or condo in 2018 as home prices and mortgage rates rise.

NAR’s March Update

Homes sales have risen for 2 months straight, however they’re down 1.1% from same time last year.  Although prices haven’t hit the 2007 records, they are too high for most to afford even though wages have grown. Home prices are now running at double the average wage increase.

The median existing-home price for all housing types in March was $250,400, up 5.8 percent from March 2017 ($236,600). March’s price increase marks the 73rd straight month of year-over-year gains — from NAR

Boston, New York, New Jersey

March existing-home sales in the Northeast jumped 6.3 percent to an annual rate of 680,000, but are still 9.3 percent below a year ago. The median price in the Northeast was $270,600, which is 3.3 percent above March 2017 – from NAR update.

Housing inventory is the most influential and persistent factor affecting home prices. Despite this, the media and some politicians blame speculation, building costs, interest and mortgage rates, cost of living, and mortgage rules. When the economy is good people want homes. Construction is strong but can’t keep up. Simple rule of supply vs demand is driving home prices.

Millennials still hopeful to buy a home in 2018

Looking for housing market predictions? Take a good look at prices, GDP, wages, jobs, and other key data below on the US Economy for the next 6 years and you may see a surprisingly positive picture, far from the dread of the recent stock market corrections.

Please do share this post on Facebook!

Should you Buy or Rent?

We all want to own a home, but does it  make more sense to rent? If you can’t afford a home in New York, Boston, Los Angeles, San Francisco, or Dallas, renting may be the only option. Here’s a few blog posts I’ve written on the US rental housing market, apartment prices, and on buying vs renting.

Buy vs Rent in 2019

What’s Driving the California Housing Market?

Strong demand from an eager demographic and economy is clashing with local resident NIMBYism to create a volatile market. See the California housing report.

This completely updated EPIC United States Housing Report has market updates and predictions for 2018 to 2020, and other data to 2026.

NAR’s VP of research Paul Bishop, predicts sales will be flat for 2018.

One of the biggest challenges is going to be in certain high-cost parts of the country where they have high home prices, relatively high property taxes or high state income taxes, then that’s ultimately going to make the cost of owning a home more expensive.

In addition, renters may lose the incentive to buy a home in high-cost areas if they can’t use the mortgage interest deduction or the ability to deduct some of those other housing-related costs from their taxes. It’s focused mostly on the higher cost areas. It’s certainly something that everyone will be monitoring and how the housing market reacts in 2018 and 2019  — from a news release on DSnews.com.




In this post, you’ll discover the hottest city markets, zip codes, get economic, employment, finance, and housing projections to understand the key fundamentals driving home buying, rental investment, home construction, and the real estate markets in 2018/2019 to 2026. Read thoroughly if you’re considering buying a house this year.

What’s the story for summer of 2018? It has to be Texas and Michigan, however the overall picture is of a very good spring and summer for the housing market nationwide and going forward to 2026. Population growth in San Francisco, Seattle, Los Angeles, Denver, Miami, Houston, Sacramento, Las Vegas and Phoenix continues strong.

The Complete Picture for 2018

Ready to choose your realtor and buy a house or condo this year? The outlook is really rosy! And how about investing in a rental income property for sustained passive income? This current lull might make the next 3 months the best time to buy. The outlook is as positive as could be for buyers. Lock in your mortgage rate.

Overall, predictions and outlook for the US housing market are positive. That’s because the US economy is on its strongest roll ever, bolstered by lower taxes, improved trading agreements, growing American confidence, happiness, comfort, freedom and the American dream has been kindled again.

Take a look at more detailed reports of major US city markets: Latest Posts: Sacramento Housing MarketSan Francisco Housing Market |  Boston Real Estate Market 2018 | Florida Housing Forecast 2018 | Miami Housing Market |  Los Angeles Real Estate Forecast | New York Real Estate Predictions | Houston Market Forecast  | Houston Real Estate Forecast | Seattle Housing Forecast

Apartment Rental Housing Market 2018

Are you considering buying homes for sale as an income investment?  With Apartment rent prices holding strong in 2018, it’s a solid investment strategy.

This graphic below courtesy of Trading Economics shows how the real estate market will be healthy for some time, and that buying a home is a wise investment (Tradingeconomics is a very informative site, have a visit afterward).

Increased government spending, low but slowly rising interest rates, and the repatriation of business and corporate funds back to the US means it’s a healthy, safe market for everyone.

Foreign investment has been strong because the world knows, the US is the place to be. American’s have always had a great attitude toward risk and business growth. Now the economy and business markets are allowing that spirit an opportunity to pay off.

NAR/Realtor Outlook on the Housing Market

Housing Indicator Realtor.com® 2018 Forecast
Home price appreciation 3.2% increase
Mortgage rate Average 4.6% mortage rates in 2018 to 5.0% (30 year fixed) by year end
Existing home sales 2.5% growth, low inventory problem easing
Housing starts 3% growth in home building 7% growth in houses
New home sales Growth of 7%
Home ownership rate Stabilizing at 63.9% nationally

Despite the market correction, experts feel this bull market could continue as long as business keeps coming back to the US. That’s a long process of repatriation. In the meantime, the jobs picture, wage growth, investment, and profit growth are giving real estate participants a lot of optimism.

The resistance to housing development is slowing. Conservatives are giving up amidst intense pressure by those facing outrageous housing shortages and skyrocketing rental prices.



Housing Shortages Won’t Ease

Although January’s sales were disappointing, it’s due to the severe shortage of housing. Demand is there and you’ll be competing against a hoard of buyers in 2018.  Corelogic expects 2018’s home prices will grow 4.3% by next December.  NAR and Realtors® expect only a 3% growth in prices this year. Nevada, Texas, Washington, and Florida are the states with the best outlook, and perhaps the best places to buy homes or rental properties.

The Bay Area, Portland, and Seattle areas saw the highest growth in prices last year while LA’s tumbled. Listings fell dramatically in cental California, Oregon, Washington, and New York.

Consumer mood was not so good in July of last year, mostly due to government problems. Yet the market came flying back. These challenges overcome mean more Americans will have more confidence in their personal situation.

The US Economy 2018/2019

These stats from Trading Economics show positive fundamentals that will drive growth in the housing market, and in turn will bolster the economy, since new household consumer spending and housing investment is a key driver of the economy.

The tax cuts should help although the Fed is counteracting that growth with a questionable raising of interest rates which seems to have sparked the sudden stock market volatility.  Although some disincentives are present for home buying in certain price ranges, that will help keep the market balanced for 2018.

Home prices should begin rising again this late spring in FloridaNew York , Boston, San DiegoHouston, MiamiSeattle, Bay Area and the rest of  overheated California.

Buyers and sellers will enjoy the market trends, stats, threats, and the key factors including housing construction starts described below. Enjoy the big picture!

Scroll down to see the stats, video, and charts on the strongest cities where you might buy or invest. And when is the best time to buy a house?

Sharing is Good! Share the Insight with others on FB and Linkedin

A brief overview of January 2018 from NAR.

Housing Demand 2018: More Buyers Joining the Party

Housing market demand predictions: Demand 2018 will see stronger demand as young buyers have more savings to invest in a home and are getting closeer to being able to purchase a home.




Housing demand is also being supplemented by bankruptcy survivors who waited out their 7 year exile joining first time buyer millennials, babyboomers, immigrants, foreign investors (Canadian and Chinese), and even gen Xers,  all of whom are looking for houses for sale.

New Home Construction Starts: Still Strong in 2018

New home building shows continued strengths, and should pick up by late spring when builders see a return of demand. Last February’s demand was also subdued.

The cost of living is rising and it means workers and businesses in cities such as New York, Los Angeles, San Francisco, Seattle, San Jose, Miami, San Diego, and Boston may migrate to cheaper cities such as Houston, Austin, and San Antonio. This is where job growth is best and housing is cheapest.

The price of apartment rental in cities such as Seattle, San Francisco, and San Jose Rents are extreme examples of the migration out of high priced areas. With limited housing and a strong economy, prices in San Francisco and the Bay Area cannot fall.

Inflation, Labor Shortages, and Building Supplies

Labor shortages, rising mortgage rates, and higher lumber costs are looming which could mean house prices will rise.  With nowhere to go, homeowners are resisting selling. The hope that the resale market will come to the rescue might be unrealistic and and perhaps even fewer resale houses will be for sale. This fall, new home sales have been brisk as reported by the Commerce Department.

Mortgage Rates on the Rise

15 year fixed rate mortgages are still a bargain compared to historical averages. A home at these interest rates has to be considered a big savings, compared to the added price.

Houses For Sale – Should You Buy or Sell in 2018?

The forecasts and predictions for housing markets in Boston, Los Angeles, San Francisco and the Bay Area, New York, Misami, Houston, Seattle, and San Diego etc. all suggest better times ahead.

See the post on the best cities to invest in real estate. Where can you find houses for sale with the best upside potential as a high return property investment?

Housing Experts Predictions and a Lot More

Let’s start off with the newly released 2018 Forecast from Freddie Mac.  The predict a good year ahead with a solid 5% growth in price. They note that the aging population could keep demand subdued although limited housing for sale should create upward price pressure.

Should buy or sell? See the specific market updates and predictions here: Los Angeles Real Estate forecast, San Francisco Bay Area forecast, New York Real Estate forecast, Boston Real Estate forecast, San Diego Real Estate forecast, Houston Texas Housing forecast, Seattle Real Estate forecast and the Miami Real Estate forecast. Bookmark this page for future monthly updates.




The need to refinance is low, homeowners aren’t too stressed out, and they’re using home equity to buy things which is good for the economy.  Overall, Freddie Mac’s report is positive for 2018.

Home Sales Expect to Rise Nationally

Freddie Mac Predicts strong sales driven by moderating prices nationally.

And as this graphic from Freddie Mac’s report shows, price appreciation is much less than before the last recession.

Hottest Real Estate Markets This Past Summer

According to NAR’s latest report, San Francisco is again the hottest city, taking back the number one spot from San Jose. The hottest small city is Vallejo California, enjoying a spillover from the Bay Area market.  Investors and buyers will be hard pressed to find buying opportunities are.

Silicon Valley prices will pressure businesses to look to cheaper cities such as San Antonio, Las Vegas, Houston, Austin, etc in 2018/2019.

Hottest Real Estate Markets in April 2018

Where are the hottest cities in the US? They’re all over this month and only 3 from California made the new top 20 list.

Screen Capture courtesy of Realtor.com

Hottest Cities for Investment Value

This chart from NAR shows where employment growth is strongest and the ratio of recent employment growth to homes being built. That’s a great stat for rental property investors looking for investment income in the best cities.

Compare that to wage growth and actual price appreciation. Again the Bay Area shows the best outlook for employment which has to be your top signal. However, rising oil prices and predictions for more, Texas may be your hottest state going through the summer.

Salt Lake City, Denver, Tampa, Dallas, Cape Coral/Naples, Charlotte, Las Vegas, Houston, San Diego, and Grand Rapids have great employment outlooks.





20 Hottest Housing Markets, January 2018 (Realtor.com) Rank (December) Rank Change Current Home Prices
San Francisco, CA 2 1 $1,249,000
San Jose, CA 1 -1 $875,000
Vallejo, CA 3 0 $390,000
Colorado Springs, CO 4 0 $270,000
Midland, TX 18 13 $265,000
San Diego, CA 6 0 $590,000
Santa Rosa, CA 7 1 $310,000
Sacramento, CA 8 2 $310,000
Denver, CO 11 2 $400,000
Stockton, CA 5 -5 $289,000
Modesto, CA 10 -1 $295,000
Dallas, TX 14 2 $360,000
Fresno, CA 12 -1 $205,000
Los Angeles, CA 16 2 $759,000
Columbus, OH 9 -6 $140,000
Chico, CA 29 13 $349,000
Oxnard, CA 21 4 $505,000
Santa Cruz, CA 27 9 $909,000
Detroit, MI 19 0 $349,000
Boise City, ID 26 6

Best cities for finding houses for sale and get a great return. For property investors or buyers with minimal cash, the cities of Kennewick, Detroit, Fort Wayne, Modesto, Fresno, and Waco look to offer the lowest prices on houses for sale. As usual, California and Texas lead the way, however Michigan is looking good with the President’s intention to bring the auto industry and related jobs back to the US.

In some markets such as Californiahome prices have leveled off a little from their relentless climb. There is a slight risk of a burst housing bubble. Outside of major city markets, the price growth potential in the next 5 years is highest. Some cities are hurting so invest carefully. Take a look at the best cities to invest in real estate and share your stories of which cities we should know about.

Here Panelists from the Urban Land Institution discusses 2017 and the next two year outlook:




Here’s 8 Reasons Why People Are Still Eager to Buy Real Estate:

  1. home prices are appreciating and it’s a safe investment over the long term
  2. millennials need a home to raise their families
  3. rents are high giving property owners excellent ROI on rental properties
  4. flips of older properties continue to create amazing returns
  5. real property is less risky (unless you get over leveraged)
  6. the economy is steady or improving (although Trump’s letting his enemies cause too much friction)
  7. foreigners including Canadians are eager to own US property
  8. bankrupt buyers are over their 7 year prohibition from the last recession and they can buy again.

Latest real estate market reports:

There are more renters now than in the last 30 years.

US homes are at their highest value ever

Foreign buyers buying record number of properties

Housing starts more than expected but not enough to fill demand

New Houses for sale dropped 3.4% in August

Resale houses for sale drops in August

How high can prices for houses for sale go in Southern California?

Read on to learn more about the economic fundamentals that suppport your purchase of real estate:

Buying and Selling — Is This the Right Time?

Are you selling your home? Speculation of a housing crash in Miami, State of FloridaLos Angeles, San Francisco Bay Area, Charlotte, San Diego, San Jose, Denver, Seattle, and many other overheated markets has more people listing their house or condo. Yet, the market is healthy, so there’s no emergency. Prices are stable so you won’t get much more by waiting.

Check out these other posts for homebuyers, investors, and realtors:

How to Sell Over Asking Price | 14 Ways to Improve Your Selling Price | When Should I Sell My Home? | Student Housing Investment | 10 Tips for Home Sellers Who Must Have the Best Price | Home Sellers Pricing Strategy | Better House Market Evaluation

Housing experts are predicting existing home sales of 6 to 6.5 million units in 2018 and then above 1.3 million new homes being built per month to 2024. The building is resuming now that the hurricanes and forest fires are over.

Will it be enough to support the economy? When American builders are feeling optimistic, it’s a good omen, however 1.5 million units per month is needed to fill forecasted demand for housing.

What’s also a good omen is what you’re going to read in this post. It may help you do many things in 2018, from finding employment (see the US Jobs forecast), to understanding politics, discovering high performing best investments 2017 to researching the best cities to live or buy houses or property in.

From Los Angeles to New York to Miami – Rental Property Equity/Income is King

Will Los Angeles Lead the Nation in 2017 in Real Estate?

Interest in rental income investment and apartments is particularly strong now in places like Miamic, Dallas, Seattle and San Francisco.  The Los Angeles housing, San Diego housing, San Francisco Bay Area housing markets are just a few to look at.  Seattle, Denver, Dallas, South Florida, Palm Beach, and New York  have a promising outlook too.

Short list of positive factors to bolster US Housing Market :

  1. moderately rising mortgage rates
  2. president Trump’s new tax plan
  3. low risk of a housing bubble / crash for most cities
  4. millennials buyers coming into the main home buying years
  5. a trend to government deregulation
  6. labor shortages pushing up costs of production and incomes
  7. the economy will keep going – longest positive business cycle in history

Check out the report on investments in rental property if you’re planning to buy in markets such as Los Angeles, San Francisco, San Jose, Silicon Valley, New York, Miami, Oakland, Phoenix, Seattle, Denver etc.  Buyers are still dreaming in California a good look at the San Diego Real estate market, and the Los Angeles real estate market as economic indicators, and a fresh look at mortgage rates. To be on the safe side, see this post on the likelihood of a US housing market crash in the years ahead. Looking to put your house up for sale in 2018? Find a Realtor now.

Housing Stats from NAR, Forisk, Trading Economics

These stats below are collected from top research and reporting companies including NAR, Forisk, Trading Economics, and other real estate market researchers.

 

Sharing is Good for your Social Health! 

Pass this blog post onto your friends and neighbors because they should know as much about the forecast factors as possible before they buy or sell.  It’s good to be helpful. Mistakes are painful!

Expert Predictions – US Housing 

1.  Expert Prediction from Eric Fox, vice president of statistical and economic modeling (VeroForecast) — The top forecast markets shows price appreciation in the 10% to 11% range. The top forecast market is Seattle, Washington at 11.2%, followed by Portland, Oregon at 11.1% and Denver, Colorado at 9.9%.

These economies have robust economies, growing populations and no more than two month’s supply of homes. In fact, the forecast of the Boston market increase sharply to 7.4% is due to reductions in inventory and unemployment. On the other hand, the worst performing market is Kington, New York with 2.5% depreciation, followed by Ocean City, New Jersey at -2.1%, Kingsport, Tennessee at -1.9% and Atlantic City, New Jersey and San Angelo, Texas tied at -1.4%.  — BusinessWire

2. Pantheon Macro Chief Economist Ian Shepherdson explains that “Homebuilders behavior likely is a continuing echo of their experience during the crash. No one wants to be caught with excess inventory during a sudden downshift in demand. In this cycle, the pursuit of market share and volumes is less important than profitability and balance sheet resilience.” — Marketwatch.

Can you save $1700 on Auto Insurance in one year? How about $10,000 in 6 years? That’s a lot of cash. Find out and compare auto insurance quotes.

Housing Construction Starts Will Slowly Rise

It’s predicted that new home construction won’t keep up with demand, however it is recovering and we’ll see more renters becoming homeowners over the next decade.

Car Insurance Quotes: Are you looking to save money for a down payment, save money with the lowest car insurance, find the lowest mortgage rate, or get a free market evaluation? Are you a realtor looking for US real estate leads?

 

If construction rates do moderate, prices in the hot markets of Miami, San Francisco, Los Angeles, San Diego, New York, Boston, and Phoenix should rocket to all time highs but what is the risk of a housing market crashHouse Renovation too is at an all time high in expenditure and this might have an impact on new housing starts.

FRED – Home Prices

US Mortgage Rate Trends

US Mortgage rates are forecast to stay low. Yet recently, mortgage rates have risen above the 4% mark and homeowners are locking in their home loans at the 30 year period. Some are calling this the Trump Effect. With Trump in power, lending requirements are expected to be eased, land opened up for development, and this should stimulate home purchases. With employment growing and wages moderating upward, the market is set for growth. Yet, some housing forecasters still cling to the idea that housing starts will moderate after strong growth to 2020.

mortgage-rates-trend

US Employment Outlook 2018 to 2024

According to BLS the job outlook is positive. Construction added 36,000 jobs in January, with 226,000 more than last year, with most of the increase occurring among specialty trade contractors (+26,000). Residential building construction trended up by 5,000 jobs. Total employment should grow by another 4,000,000 to 2024.

National Employment Growth Employment Growth Predictions, 2014–24 Median annual wage, 2014
2014 2024 Number Percent
Total, all occupations 150,539,000 160,328,000 9,788,900 6.5 $35,540

Job Growth by Occupation to 2026

2016 National Employment Matrix title and code (Chart data courtesy of BLS
Employment Change, 2016–26
Median annual wage 2016
2016 2026 Number Percent
Total, all occupations 156,063.80 167,582.30 11,518.60 7.4 $37,040
Personal care aides 2,016.10 2,793.80 777.6 38.6 $21,920
Combined food preparation and serving workers, including fast food 3,452.20 4,032.10 579.9 16.8 $19,440
Registered nurses 2,955.20 3,393.20 438.1 14.8 $68,450
Home health aides 911.5 1,342.70 431.2 47.3 $22,600
Software developers, applications 831.3 1,086.60 255.4 30.7 $100,080
Janitors and cleaners, except maids and housekeeping cleaners 2,384.60 2,621.20 236.5 9.9 $24,190
General and operations managers 2,263.10 2,468.30 205.2 9.1 $99,310
Laborers and freight, stock, and material movers, hand 2,628.40 2,828.10 199.7 7.6 $25,980
Medical assistants 634.4 818.4 183.9 29 $31,540
Waiters and waitresses 2,600.50 2,783.00 182.5 7 $19,990
Nursing assistants 1,510.30 1,683.70 173.4 11.5 $26,590
Construction laborers 1,216.70 1,367.10 150.4 12.4 $33,430
Cooks, restaurant 1,231.90 1,377.20 145.3 11.8 $24,140
Accountants and auditors 1,397.70 1,537.60 139.9 10 $68,150
Market research analysts and marketing specialists 595.4 733.7 138.3 23.2 $62,560
Customer service representatives 2,784.50 2,920.80 136.3 4.9 $32,300
Landscaping and groundskeeping workers 1,197.90 1,333.10 135.2 11.3 $26,320
Medical secretaries 574.2 703.2 129 22.5 $33,730
Management analysts 806.4 921.6 115.2 14.3 $81,330
Maintenance and repair workers, general 1,432.60 1,545.10 112.5 7.9 $36,940
Teacher assistants 1,308.10 1,417.60 109.5 8.4 $25,410
Financial managers 580.4 689 108.6 18.7 $121,750
Heavy and tractor-trailer truck drivers 1,871.70 1,980.10 108.4 5.8 $41,340
Elementary school teachers, except special education 1,410.90 1,514.90 104.1 7.4 $55,800
Stock clerks and order fillers 2,008.60 2,109.60 100.9 5 $23,840
Teachers and instructors, all other 993.9 1,091.80 98 9.9 $30,110
Receptionists and information clerks 1,053.70 1,149.20 95.5 9.1 $27,920
Sales representatives, services, all other 983 1,077.90 94.9 9.7 $52,490
Business operations specialists, all other 1,023.90 1,114.30 90.3 8.8 $69,040
Licensed practical and licensed vocational nurses 724.5 813.4 88.9 12.3 $44,090

US Housing Starts to 2024

New Housing starts and predictions to year 2024

This enlightening stat in the graphic below shows the US economy hasn’t recovered from the great recession and housing crash of 2007. Single family spending is rising rapidly, yet no one believes conditions for high inflation exist. It points to years of solid, healthy growth ahead with an unfulfilled demand for single detached homes.

 Graphic courtesy of paper-money.blogspot.ca

30 year and 15 Year Mortgage rates Graphic courtesy of paper-money.blogspot.ca

Housing and Interest Rate Forecast to 2019
2013 2014 2015 2016 2017 2018 2019
Housing Activity (000)
Total Housing Starts 928 1,001 1,107 1,177 1,204 1,246 1,299
Single Family 620 647 712 784 842 900 962
Multifamily 308 355 395 393 362 346 337
New Single Family Sales 430 440 503 561 610 647 693
Existing Single-Family Home Sales 4,475 4,338 4,627 4,828 4,978 5,029 5,119
Interest Rates
Federal Funds Rate 0.13% 0.13% 0.38% 0.63% 1.13% 1.88% 2.38%
90 day T Bill Rate 0.06% 0.03% 0.05% 0.32% 0.96% 1.71% 2.22%
Treasury Yields:
One Year Maturity 0.13% 0.12% 0.32% 0.61% 1.20% 2.41% 2.70%
Ten Year Maturity 2.35% 2.54% 2.14% 1.84% 2.38% 2.82% 3.22%
Freddie Mac Commitment Rates:
Fixed Rate Mortgages 3.98% 4.17% 3.85% 3.65% 4.10% 4.54% 4.96%
ARMs 2.88% 3.17% 2.94% 2.87% 3.18% 3.62% 4.04%
Prime Rate 3.25% 3.25% 3.26% 3.51% 4.15% 4.98% 5.48%
Data are averages of seasonally adjusted quarterly data and may not match annual

Chart stats courtesy of Nahb.com

Multifamily Home Starts - Millennial Buying Forecast

Save Money on Your Car Insurance

Saving on car might even cut your home insurance and give you more money for your home downpayment. Check now for the lowest quotes for car insurance Los Angeles, car insurance Boston, auto insurance San Francisco, auto insurance Denver, car insurance Toronto, and car insurance Chicago.

New Home Construction Prediction - Home Resales

Employment Outlook: Let’s not forget jobs. Total employed persons in the US will grow 800,000 over the next 2 years.

f4 Graphic courtesy of tradingeconomics.com/united-states/forecast

Existing homes or resale home sales, may slow slightly but US construction spending will increase. Prices will rise to 2020 and construction spending will grow through 2020.

Existing Home Sales to 2020 - Prediction to 2020 Graphic courtesy of tradingeconomics.com/united-states/forecast

Apartment Rental Forecast

Demand for apartment rentals is on the rise and construction starts of multi-unit dwellings is rising to match demand. That creates more opportunity for rental property investors to grow their portfolios in 2018. Yardi says YOY rent growth was 3.0% and they expect rent growth to remain in the 2.5% range.

Chart courtesy of RealPage

Cities with the most apartment construction include Dallas, Houston and Austin, reflecting Texas strong recovery. For more information, see this post on the best cities to buy real estate and best cities to live in and with the best job outlook.

Rental City Markets with Top Growth

Yardi released its winter national outlook report and forecasts a 2.5% increase.

There you have a quick graphical synopsis of factors that will support a strong US housing market for 4 more years.

What’s Your Personal Real Estate Sales Forecast?

Are you a full time realtor looking to grow your prospects and leads?  Full service digital marketing is a bargain when it’s done well.   What’s the forecast and trends for the real estate sales in your region? If you’re in Vancouver, Toronto, Miami, San Diego, San Francisco, and many other US centers, you’re probably grinning from ear to ear. But will you get your slice of that pie? Relying on real estate lead generation companies is another way you can go, however you have to pay forever and it’s questionable whether their leads are high quality.

My realtor marketing programs let you leverage the full mls listings with a powerful rets idx website, and capture more leads.  I’ve enjoyed serving clients in many housing markets including Toronto, Boston, Chicago, Houston, Montreal, New York, San Diego, Los Angeles, Florida, and San Francisco California.

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Housing Market Predictions 2018: Ideal climate for best real estate investing.

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Auto Insurance News – Car and Truck Insurance Coverage Comparison Savings

Auto Insurance Quotes

Auto Insurance News Report

Welcome to the latest edition of the Auto Insurance News Report. Aside from finding the insurance company offering the lowest auto insurance quote, we’ve got insight into auto insurance trends in the US and Canada.

Please bookmark the page in your browser and return often.

ICBC Desperate for Cash to Stave off Bankruptcy, new ideas include caps on claim payouts, street cameras, and almost impossible requirements to gain a driver’s policy discount. New NDP government has its ands full with throttling Alberta oil and is clamouring to deal with ICBC $1.3 Billion deficit for 2018.

The government’s ICBC executives are trying to resolve their business crisis with ineffectural fixes.  They believe raising car insurance premiums, capping accident claims, considering driving experience in driver ratings, raising premiums for drivers with minors and serious convictions, giving discounts for low-risk drivers and by revamping ICBCs antiquated driver rating system, they can avoid privatizing the auto insurance industry.

BC drivers and tax payers might still be wondering how this will resolve a $1.35 billion dollar problem each and every year ahead.

Vancouver’s experimentation with government run auto insurance is revealing what it should have known before. ICBC has run into severe financial difficulties and is now looking at any revenue sources to keep it alive.

Vancouver BC Canada to Have the Most Expensive Car Insurance

The Canadian Taxpayers Federation is charging that the ICBC is using its monoply to drive Vancouver auto insurance rates higher. That would give Vancouver auto rates the distinction of being the highest in Canada, above the car insurance rates Toronto drivers pay.

The ICBC is a provincial government department which controls all auto insurance in BC. It was asking for a 6.4% increase in premiums. The CTF says this will push average car insurance rates in Vancouver to a whopping $1680.

That would underscore the importance of shopping for a better auto insurance quote and comparing value.

ICBC’s own poll of BC drivers suggested they want more competition in the auto insurance marketplace. 89% of respondents believe shopping around for insurance would save significantly on their auto insurance costs. Last year, ICBC stopped providing insurance coverage for luxury cars.




Auto Insurance in Toronto Continues to Rise

A recent report called Fair Benefits Fairly Delivered: A Review of the Auto Insurance System in Ontario, revealed that Ontario drivers paid an average annual insurance premium in 2015 of $1,458 per vehicle, nearly 57%higher than the national average of $930.  A report in the Toronto Star suggest that high premiums are going to experts and lawyers and not to those injured in auto accidents.  That was not the intent of the no fault insurance program, but it looks like the rich are benefiting from it, rather than ordinary Ontario drivers.

High Tech Cars Being Blamed for High Auto Insurance

A new report from suggests that new advanced technology used in today’s cars is actually driving up insurance rates. In fact they’re blaming the 8% increase in auto insurance rates on the new tech in vehicles, increase in cars on the road, and higher medical bills.

Consumers not using Latest Technology to File Claims

Although many insurance copnaies have sunk a lot of money into apps and online connectivity, car owners are not ready to use them it seems. JD Power and Associates just reported that only 9% of claimants will file online. Overall satisfaction with their digital first notice of loss (FNOL) online service dropped 16%.

It seems insured parties prefer a quick phone call to report an accident.  JD Power found that claims service was the most important benefit.  Customer satisfaction with digital appraisal apps improved by 26 points among Gen Y consumers, but declined by 16 points among Pre-Boomers.

Will Tesla Electric Vehicles Cost More to Insure?

If you’re one of the 300,000 people who put down $70,000 each for a Tesla Model 3 this year, you may want to plan ahead to pay your auto insurance too.  If the price of the car plus finding a recharging station aren’t concerning you, the cost of your insurance may.

A report in the Huffington Post suggest insurance rates for electric cars is about 6 to 8% more expensive than a comparable gas powered car. This is despite the good crash testing ratings of the Tesla models. If you’re looking to know more about car insurance for Tesla vehicles, visit ratelab’s excellent coverage.

From the Denver Post:

Tesla’s U.S. sales of its Model S sedan jumped 59% over the same quarter last year, increasing its already sizable lead among large luxury cars, according to internal third-quarter sales numbers — which Tesla usually keeps confidential — and competitor data compiled by the company. Tesla says it’s now responsible for almost a third of all sales in the segment. Its nearest competitors are the newly updated BMW 7-Series and the Mercedes-Benz S-Class.




UK Drivers Paying More for Electric Vehicle Insurance

A new report from the Actuary says UK drivers are paying 45% more for ecar insurance.  Despite government mandated controls of gas powered vehilce and a push to clean air, it looks like the cost of repairing electric vehicles may be weighing on cheaper auto rates.

Growth of Electric Vehicle Sales Faster Than Anyone Expected

According to EV Volumes, sales of electric vehicles are rising quickly. They found that total plug-in vehicle sales in June increased a 46 % over last June.  The growth is reported to be 10 times that of traditional gas powered vehicles. The EV growth seems to be attributable to a preference for them in China and the fact new batteries are cheaper and more powerful. The trend continues.

Around 312,000 plug-in electric cars were sold during the first half of 2016

Graphic courtesy of EV Sales.com

Tesla Motors is preparing to revolutionize the automobile and fuel industries. Learn more about Tesla.

Higher Insurance Rates in Some Toronto Neighbourhoods

Canadian insurance website Kanetix, recently published a report that shows that drivers in certain Toronto neighbourhoods are paying more for insurance. The graphic below shows the neighbourhoods Kanetix determined to have higher auto insurance rates. The report suggests that the presence of hazardous intersections may be the source of risk that results in the higher premiums. They also reported that insurance rates in Toronto may be 30% or $449 higher than the provincial average.  The difference in premiums from the least expensive to the most expensive was $945 per year.

For certain types of drivers and certain types of vehicles, we’d have to think the differences could be much wider. The risk factors would magnify each other and results in a higher insurance quote for certain types of drivers in some neighbourhoods, yet generate very low insurance quotes for others.

Kanetix
Graphic courtesy of Kanetix.ca – Insurance Website

A report in the Toronto Star, citing the Kanetix study says claims are more frequent in these areas of Toronto and the payouts are higher.  They cited poorer neighbourhoods as having the biggest increases.  In one case, a driver said his premiums rose by $1000 when he moved from Ajax to Toronto to eliminate his commute. In the report, Pete Karageorgos, director of consumer and industry relations of Ontario with the Insurance Bureau of Canada says that shopping for insurance is the key to keeping rates under control.

The takeaway from this recent news is that insurance companies may be making major alterations to how they underwrite insurance in order to grow their profit margin. Good too stay aware or get caught in their trap!

Searching for the lowest auto insurance in Torontotruck insurance in Denver, car insurance in Seattle, motorcycle insurance in Las Vegas, car insurance in San Jose Ca or cheap car insurance in Chicago is easy.  Search on Google continuously and get at least 10 quotes.

California Drivers are the Worst

If you’re a driver in California, you might be feeling badly about this ABC news report that you’re the worst car and truck drivers in the country!  They quoted a study by QuoteWizard which looked at traffic citations, incidents of people driving under the influence, along with the number of car crashes into consideration. It seems California has more of all that and are probably paying for it when they buy a new auto insurance policy.

“California is number seven for accidents, number nine for speeding, and number five for citations. Even worse, its number two for DUIs,” the study reads.

Rising Speeds Have Results in 33,000 Additional Fatalities

This fascinating new report on CBSnews.com shows how accidents, fatalities and general road safety vary right across the US. We all know certain highways areas are fraught with risk, but the report shows how tolerance for bad behavior could be behind the rates of driving mayhem in certain states and cities. While Montana and Arkansas had most fatalities, with Georgia the fastest growing, New York and California actually had the fewest fatalities per 100,000 population.




Toyota and Honda top Safest Cars List for 2017

38 models were awarded the Insurance Institute for Highway Safety’s designation of Top Safety Pick. Toyota and Honda lead the list of manufacturers safest vehicles. The reported that one major design flaw in vehicles was headlights.  These are the to 6 cars/SUVs that IIHS believed are the best of the bunch in 2017:

  1. Acura MDX
  2. Acura RDX
  3. Audi A4
  4. Audi Q5
  5. Buick Envision
  6. Chevrolet Volt

Only 82 vehicles qualified for the 2017 honors list. Your can read more at the IIHS Website.





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Find your best insurance quote online – cheap car insurance for smatter consumers

Real Estate Investing – Where to Invest – US Stock Market Forecast 2018

Where to Invest in 2018 – Real Estate, Stocks, Gold or Cash?

Looking ahead  to 2017 and wondering where to invest?  US stock markets have had a fantastic run the last 6 years, with the DJ hitting 20,000. But is this the end of it?

baldeaglesmall
Photo courtesy of baldeagleinfo.com

The real estate market had a sharp rise these last few years, but has it topped out too? Could they both crash or soar like an eagle? We know the past, but how are we on forecasting the future?





Choosing between property or stocks might seem like choosing between wine or cheese, ice cream or pizza, or, tofu or sushi, but after you read this post,  you might find that one is more financially nutritious than the other. And if both markets crash in 2017, well, if you buy a house or property, you still have something!

To ensure you make a good investment decision, you can read up on the advantages of buying real estate, to whet your appetite for the interesting video interview with investing guru Grant Cardone at bottom.

Like most real estate investors or stock market investors, you’re wanting to beat the averages and pull off a big win in 2017. And who can blame you? If you’re open minded and smart, you might double or triple the ROI anyone else is earning. This post not investment advice but rather a wake up to the strength of real property in the best zip codes.




Let’s take a quick look at real estate investment opportunities which might produce exception returns in 2017 compared to the stock market of 2017, which has pretty well peaked.

realestatevsstockmarket
Screen Capture courtesy of thescallingroup.com

US Stock Market Forecast 2017

“For 2017, J.P. Morgan anticipates geopolitical risk stemming from Europe and the Middle East as well as questions surrounding the new policies from Donald Trump’s presidency will permeate markets. Still, the firm also estimated in the report that the S&P 500 Index will surge 8% to 2,400 by the end of 2017.  A stronger U.S. dollar and higher rates pose risks for stocks in 2017, as these factors can affect price-to-earnings ratios, emerging markets, the housing market, and U.S. equity groups such as multinational, domestic manufacturing, and bond proxy companies, according to JPMorgan.  – from a report on the WSJ.com.

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chipjoanna
Screen Capture courtesy of Magnoliamarket.com

Where are the Best Opportunities and Cities to Invest in Real Estate in 2017?

If you read my post on the best US cities for real estate investing, you know that some cities offer a 30% return right off the bat. Choosing the right city is a big part of the profit equation especially if you’re modest investor. The other parts are which specific types of properties to pursue, whether there’s plenty of millennial buyers in the area, and which types of upgrades bring the best return.

Home flippers will want to choose single detached homes especially where there is an income apartment built in to the property.  Is San Francisco or New York or Los Angeles or Waco a good bet for a solid flip? Ask Chip and Joanna as I’m sure they know that market well enough. For other markets, there are sources so don’t shy away from a little research.

Pick all the right property buying variables intelligently, and you raise the likelihood of making a lot of money on your investment. Take a good look at rental income properties in Los Angeles, San Jose, Bay area and San Francisco simply due to the persistent high apartment rentals prices. It doesn’t look like there is a solution for that overheated market. With no new construction, current rents can only go higher.




Is Stock Market Investment a Good Choice?

Take a look at how the Dow Jones has fared since January of 2015. If it wasn’t for the recent Trump bump up, the market barely progressed. And the stock markets were all aglow about record prices. Well, they also said Trump would ruin them. After a lot of turbulence, it looks like investors believe Trump will be good for all the big corporations and perhaps economic growth in the US.

The stock markets are at all time highs with nowhere to go. The percentage gain on current prices will not be good. Of course, you may find specific stocks to gamble in high growth industries, but it all seems like roulette to me. Contrast that with real property in some of the hottest upcoming cites and what you could do with that property and now you have incredible potential for profit. And could all those people on HGTV be wrong?

The Trump rally will continue into the early part of 2017, then drop off as the Fed hikes interest rates more than the market expects and sentiment shifts, Goldman Sachs predicts in its forecast for the coming year — Goldman Sachs

djchart

And here in the last 12 months on the Nasdaq, we’re seeing flat growth in prices. If Trump hadn’t won the election, we would be seeing a flat line right across into 2017.  If the Trump euphoria wears off and he can’t create the economic results he says are possible, you might see this curve heading back down to the 4500 mark.  Personally, I think Trump’s efforts will provide much improvement, but that improvement might be more visible in the real estate market. That’s why in 2017, investing in real estate is where everyone is headed. That transfer of cash to the property sector should create some stellar returns.  Discovering the best cities to invest in is half the battle.

Has any small investor ever gotten rich off of dividends?

nd2016

So the tale of the stock market curve is really all you need to know.

Another important benefit of investing in real property, especially for house flippers, is that you’re more personally and emotionally engaged in the process and outcome. Stock market investing is passive and you can do nothing to help the performance and ROI. With real property, you are able to find ways to help yourself succeed.  Wether it’s flipping or living in an income rental property, you can effect the performance of that investment. Let’s hope you make the right decisions and hire the right people!

Hear what Grant Cardone says about real estate marketing for next year.

Further resources on stocks vs real estate:

thebalance.com/making-money-from-real-estate-investing-357984

inman.com/2016/11/22/zillows-6-predictions-for-the-2017-housing-market-under-trump/

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Is this the right year to invest in rental income property?  Find out more about the best investments in 2017 including investing in real estate and investing in the top real estate zip codes.

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