1. Prices calming down
Real estate values have been on the rise for a while, but are likely to slow their pace this year.
2. More homes will come on the market
The slowdown in home prices will prompt more owners to list their homes to buy new ones.
The new home market is also expected to grow in the coming year with builders focusing more on starter and middle-range homes, which will also boost inventory and make it easier for buyers.
With more homes on the market, bidding wars will become less common and prices could ease even more.
3. Low Mortgage rates won’t last forever
The Federal Reserve is widely expected to begin increasing interest rates soon, which means the window for record low mortgage rates is closing.
While rates are expected to go up gradually, higher rates push up borrowing costs and monthly mortgage payments.
4. Rents will still hurt
Rent prices are expected to continue to climb in the new year, which means in most cities, buying will be cheaper than renting.