It is not yet clear what the economy or stock market will do in 2018, but an increasing number of predictions related to the housing market say that growth will slow all the way down to two percent nationwide. Some states and areas will even see declines according to some predictions.
Nick Vertucci is among those who believe that the housing prices are going to stabilize or perhaps even decline slightly in some markets. He is someone worth listening to on this particular topic because of his wealth of experience in the market. He has managed to build up his own little real estate empire over the years. It is not as though he came from a family with means either. He had to build up everything that he now has from literally nothing. Knowing financial struggle just made him all the more hungry for success in his own life.
The price of the median home in the United States has increased by thirty-eight percent since 2012. The same time period has only seen a twelve percent increase in wages. Improving conditions in the job economy and in consumer sentiment has led to a rush to purchase homes. However, the homebuilders themselves have not kept up with that increase in demand. Thus, there is a lot more pent-up demand in the housing market than there are housing to purchase. The prices for those that are on sale continues to climb as a result.
In 2018 we are finally going to see some relief from these constantly increasing prices says Vertucci and others. The economy as a whole is expected to catch up to housing prices in some way throughout the country. The new tax law passed by the Republican Congress and signed into law by President Trump has a lot of people thinking that the economy is going to boom. They also believe that wages are going to be on the rise, and this may help to temper the housing prices.
It appears likely that homebuilders are going to start to pick up their pace of construction. At the exact same time, most everyone expects that the Federal Reserve is going to raise interest rates at least once in the next year. That could put a damper on all asset classes. The Fed is trying to prevent an overheating of the economy, but it may well burst the very growth that has been going on up to this point anyway.
Housing prices would be the first to suffer if this is indeed what happens. Nick Vertucci has been recommending that those who follow his lessons be cautious with their real estate investing at this point. He does not want to see people get hurt by getting into the market right at the top of things.
At this point, very few are predicting that the market is going to correct in the kind of way that it did in 2008. The same conditions are simply not present. While housing prices have indeed been rising rapidly, there is not the same kind of fuel to the fire that was present before the Great Recession. There could easily be a pull back in prices without having a disaster on our hands like we did back then. The bottom line is to just be careful right now.
For more info, check out Nick’s official site: http://fortunesinflippingevent.com/
Or find Nick Vertucci on Tumblr: http://nickvertucci.tumblr.com/