While the crystal ball was, at one point, the preferred method of fortune telling, Realtors Chief Economist Lawrence Yun has more sophisticated techniques for predicting the future. After pouring over statistics and analyzing many other factors, Yun has our housing market forecast.
So what does the future hold? Speculations indicate that the market is headed toward another slowdown. This is partly due to an insufficient supply and swiftly rising home prices. Yun projects a drop of 1% to 5.46 million in 2018. However, home price growth should remain strong, with an increase of 5% across the nation. Low inventory levels, prevalent across the country, and new construction has not quite caught up to fill the gap. Encouragement for builders to increase supply will help contain rapid price growth.