2018: Real Estate Crystal Ball
Posted January 21, 2018 in Real Estate Trends
- Mortgage Rates Rise Slightly
Most experts predict 30-year mortgage interest rates to remain low, but rise slightly in the next few years. Pressure on the Federal Reserve to raise interest rates will come from the continuing strong economy and the risk of inflation.
- Home Prices Go Up, Not Down
If you’ve been waiting for the “bust” to buy Clark County real estate, you’ll need to keep waiting. Prices are continuing to rise with no end in sight. Portland makes the list of cities expected to have the highest price growth in 2018, and Clark County will continue to rise with that Metro Area tide.
- Accessory Dwelling Units Continue to Increase
Accessory Dwelling Units (ADU) are small secondary housing units with kitchen and bath facilities, located in or next to existing homes. They include basement conversions, garage expansions, or new backyard cottages. With the price of land continuing to rise in Clark County, more property owners will explore the possibility of adding another living unit to their property to house relatives in a multi-generational way or to add rental income.
- Smaller, Urban Living
Apartments are springing up in places once considered “dead after dark.” New generations of residents—see Millenials and Gen Z below—have different ideas about lifestyle than do Baby Boomers, and Baby Boomers are warming to the idea of walkability and downtown amenities like restaurants, galleries and pubs that have been transforming urban areas of Clark County.
This powerful group represents around 34% of home buyers and 18% of home sellers today, according to the National Association of Realtors. They are the fastest-growing segment of the workforce. Millenials were born between 1983 and 2001, and have changed everything about technology and the way we communicate. They value their lifestyle, are socially liberal, rely heavily on word of mouth as opposed to “mainstream media,” and are educated. They’re also the first generation with more educated women than men.
- Gen Z
Just when you thought you were figuring out Millenials and their phone obsession, Gen Z arrives. Gen Z was born between 1993-2000, and Forbes reports they make up around 25% of the U.S. population, making them a larger segment than either Baby Boomers or Millennials. The oldest Gen Z’s are just graduating college and entering the housing market. They are very tech savvy.
- New Construction Will Remain Strong
One of the first categories of real estate to recover from the recession was new construction, as pent-up demand and new home amenities drove subdivision development and new home starts. This will continue in 2018, as the growth of Clark County simply cannot be accommodated with only infill development and increasing density. People are moving to Clark County as they have for decades, need a place to live, and many want a new home instead of an existing one.
- Clark County Title Will Continue to Thrive.
In the 38 year history of Clark County Title, our title and escrow professionals have researched and closed many thousands of transactions. Our expertise and attention to detail has earned the loyalty of many of the BEST Realtors and lenders in our Clark County and helped us to be voted the number one title company in community voting for five straight years. Our problem solving attitude and effort extends throughout our staff to help people reach successful conclusions— if you are doing anything involving real estate, we can help!
From the local title and escrow professionals of Clark County Title, “Best wishes for a successful 2018!”
Clark County Title
1400 Washington St, Ste. 100
Vancouver, WA 98660
3200 SE 164th Avenue, Ste. 219
Vancouver, WA 98683