Realtor.com partnered with Builders Digital Experience (BDX) to deliver its unique housing economic insights to the builder community, releasing a special edition of its 2018 Housing Forecast today at The NAHB International Builders’ Show.
Realtor.com ‘s 2018 housing forecast highlights a growing economy and positive demographic trends, creating opportunities in the housing market despite the affordability challenges buyers will face from rising prices and mortgage rates.
Key takeaways for builders in 2018 include:
- Entry-level home construction a huge opportunity – Entry-level homes will continue to see price gains due to the larger number of buyers who can afford them and more limited homes available for sale in this price range.
- Millennials anticipated to gain market share in all home price segments – With the largest cohort of millennials expected to turn 30 in 2020, their homeownership market share is expected to increase. As they age into peak family forming years, their top housing priorities will shift from proximity to urban life to more space and quality schools.
- Southern markets predicted to lead in sales growth – Strong economies and healthy building levels will help drive Southern markets to beat the national average home sales growth. Builders who can adapt to regulatory hurdles in more challenging Western markets will find that prices still outperform national average growth in this region.
- The tax bill is a game changer – With the passing of the Tax Cuts and Jobs Act, the wealth and income effect of tax cuts will likely stimulate demand and increased production in the short term, but could lead to fewer sales and impact prices negatively over time in markets with higher prices and property taxes. Be wary of economic capacity constraints as inflation will kick in and the Fed will more aggressively increment interest rate increases.
“Our collaboration with BDX over the last eight years has enabled builders throughout the country to connect with millions of Realtor.com users,” said Tricia Smith, senior vice president of channel sales and operations at Realtor.com. “We are proud to deliver our housing insights to the builder community at a time when many opportunities exist for the new construction industry.”
“Our relationship with realtor.com gives our builders a significant advantage as they are marketing their homes,” said Tim Costello, CEO of BDX. “From new home community listings to multiple advertising options, we are excited to give our clients the opportunity to connect to this qualified and active group of shoppers.”