The spring 2018 real estate market is a “good news bad news story,” writes Forbes contributor Ellen Paris. While affordability and inventory continues to slip, interest rates and housing prices rise, signaling a strong economy. These conditions suggest sellers will get the better end of the deal, reports Paris. Arch Capital MI’s Housing and Mortgage Market Review Spring 2018 Report predicts that 2018 will be one of the worst years for housing affordability, with home prices rising year-over-year for the 24th consecutive month.
According to the report, the size of the monthly mortgage payment needed to buy a home rose nearly 5% over the past three months. The picture gets bleaker towards year end with affordability possibly decreasing an additional 10%-15%.
According to Paris, this leaves millennials competing with baby boomers for the same properties in some markets. In addition, the report found that homes sold in March in 54 metro areas spent an average of 60 days on the market, while hot markets like San Francisco and Seattle recorded lower averages -- 20 and 28 days, respectively.
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