Broker Dave's 2018 Local Forecast

Market Trends

MARKET REPORT………Washington D.C. Dec. 20th-----Existing home sales surged for the third straight month in Nov. reaching its strongest pace in almost 11 years, according to NAR. Existing inventory is down by 9.7% adding fuel to the fire. According to NAR unsold inventory is at a 3.4 month supply, which is down from 4 months a year ago.

Time on the market has also been reduced to 40 days vs 43 days a year ago, nationwide. 44% percent of the homes sold in November were on the market for less than a month. WOW!!!

The percentage of cash sales are also up. Much of that is a result of buyers cashing in some of their stock portfolio. Their thinking is, when the market slides back, they could end up with very little or at least a large reduction in their portfolio. If they put their cash into real estate, even if the real estate values decline, they will still own the property.

Florida Market report according to FAR………How did we fare? Even with Irma taking a chunk out of us, sales were still up statewide, 1.5% over last year, at this time. I think we will do better when Dec. sales reports are in. With remaining inventory, we have a 3.8 month supply for single family homes. Not bad considering what we have been through.

Foreclosures and short sales continue to be rare. That is good. For single family homes, short sales dropped 36% and foreclosures dropped 45.9%. Great news!!!!

Broker Dave’s….. 2018 FORECAST ………..If you  look at all the numbers there has been good to modest gains in just about every sector, nationwide. When ever there is a market pause, (Hurricane Irma) real estate always comes back. Sometimes like a lion, sometimes like a lamb. I think a lamb is better because we don’t see runaway inflation, panic buying or overly positive thinking, which was part of the problem last time.

All indicators are 2018 is going to be a very good year for real estate in Florida. Nationwide the economy is strong, the stock market is more than healthy, interest rates are still good. Freddie Mac, says the average rate for a 30 year conventional fixed rate was 3.92% in Nov.