Allen Tate CEO Pat Riley says no real surprises expected
If you expected the New Year to bring big changes in the Carolinas’ real estate market, you’ll need to wait longer. Buyers and sellers will face similar challenges and opportunities in 2018 as they have in the past two years.
Inventory will remain low – but so will interest rates – so both buyers and sellers can benefit, said Allen Tate President and CEO Pat Riley, in the January edition of Carolinas Market Update.
In 2017, Allen Tate Companies closed the year with 22,273 closed sales units and $5.672 billion in closed sales volume. That’s up from 22,194 closed units and $5.45 billion in 2016, and only second to 2006 sales volume at $5.71 billion.
“Despite low inventory, we have continued to see steady, sustainable growth in both number of homes sold and appreciation,” said Riley.
New construction will continue to recover, but will still lag behind historical averages as builders focus on the demands of today’s new home buyer – with a higher price tag.
Baby boomers continue to delay downsizing, and Millennials have delayed their first home purchase – both affecting the home-purchase cycle, said Riley. Additionally, what makes the Carolinas an attractive destination for relocation adds pressure to an already-stretched housing inventory.
Real estate “winners” in 2018 will be homeowners who are keeping their homes current and marketable – with updated features that today’s buyers want. Renters who are holding out on buying are “chasing interest rates and home price appreciation” like never before, said Riley, which means less home for their money the longer they delay.
Riley’s real estate advice for 2018? If you’re renting, start the conversation with a Realtor® to see what stands between you and homeownership. Get pre-approved for a mortgage so you’ll be ready to buy as soon as your lease is up. If you’re a homeowner, talk with your Realtor about what improvements to make now so your home is marketable when the time comes to sell.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle and Upstate S.C. regions. It is produced quarterly by the Allen Tate Companies and features information, statistics, trends and predictions about the real estate market in North and South Carolina.