A Message from Lawrence F. Flick IV Chairman Berkshire Hathaway HomeServices Fox & Roach, REALTORS®and The Trident Group
Fueled by steady job and wage growth, low unemployment, and record-breaking stock market gains, our national economy sizzled in 2017. And though the temperatures outside are often below freezing, in our area we are basking in a HOT real estate market!
In the Berkshire Hathaway HomeServices Fox & Roach market area, the number of homes sold in 2017 was 8% greater than the previous year. This is the sixth consecutive year of growing sales. Will this trend continue in 2018? I believe it will.
Here’s why: As we begin 2018, all indicators point to continued economic growth.
• Unemployment remains very low, and is expected to go even lower. This will support continued wage and income growth, which bodes well for the real estate market.
• Demographics will continue to play an important role in this strong market. An increasing number of millennials are entering their mid-30’s, traditionally the age when many people buy their first home. Moody’s Analytics believes that, while many millennials continue to live with their parents, the low unemployment rate suggests that they are working. This indicates that they will likely be in a good position to buy homes.
• Average sales price is on the rise. As the market recovered over the past six years, average sales price remained relatively stagnant. In the past two years, we can see a noticeable increase. In some of our market areas, home prices have clearly made a gain, while some markets have yet to recover to the 2007 peaks. A shortage of desirable properties for sale
• Interest rates remain at historic lows, and mortgage credit is becoming more easily available, as banks gain confidence in this much-improved credit environment.