From January 1st, 2012, through January 1st, 2018, the national average price for homes put up for sale has consistently increased. Research shows that the United States’ median home price, when all states and territories are considered, is up an astounding, jaw-dropped 38 percent.
The Case-Shiller indexer complex financial mathematical tool that lets real estate agents know how well or how bad the market is doing, rather than having to look at many sets of complex data and drawing inferences by one’s self. So, did the Case-Shiller index rise any over this time period? Yeah, but only by 36 percent – for those that aren’t familiar with the Case-Shiller index, a 36 percent jump in just six years is nothing short of spectacular.
— Nick Vertucci (@NVREA) February 20, 2017
While the past six years have unarguably treated sellers generously, the performance of real estate markets is likely to gradually decrease, at least in certain states, in 2018. By 2020, according to Nick Vertucci, most states will start experiencing decreases in terms of the price of homes placed on the market for sale.
Do These Two Statistics Really Mean Anything?
Only if you compare them with other sets of data for the same time period, which – obviously – must be calculated in the United States.
The median wage rate only rose 12 percent in that six-year period. For those that aren’t too familiar with the average wage rise over the years, a 12 percent rise is more than acceptable – it’s good. Not great, but good.
So, when we compare that to the status of home prices that have recently been placed on the market for sale, it’s easy to see that the real estate market has over performed just about every other market or indicator of performance here in the United States.
Let’s Dig Into Some Of The Many Reasons Explaining The Current Housing Market Situation
Where Are Sales Prices Of Homes Expected To Drop In The Coming Year?
- Over the past twenty to fifty years, people in our country have tended to stay in their homes for an average of seven years prior to moving out, and selling their homes to other individuals or families. Today, however, people wait about ten years prior to leaving their places of living. This makes it harder to purchase homes, as people want more money to move out according to others’ schedules.
- Only 1.2 million homes were built in the past decade, making it difficult for buyers to find homes. Most decade-long periods built about 1.5 million residential structures.
According to research conducted by experts in economics, consumer science, and – of course – real estate, Illinois, New York, New Jersey, Maryland, Connecticut, Vermont, and Massachusetts are all slated to experience decreases in sales prices of homes put up for grabs in 2018. In other words, virtually all of the Northeast United States – that’s all of the New England region – is going to become more of a buyer’s market in 2018.
States where we’re likely to see the biggest increases in home prices are throughout the Western portion of the United States of America, including Colorado, Utah, Arizona, Washington, Idaho, and – you guessed it – Tennessee.
The above inferences are based on new tax laws that were passed by United States Congress just a couple of months ago, the number of jobs and the quality of employment markets, and how many houses are up for grabs in those states. Don’t bother trying to crunch your own numbers, Nick Vertucci says – trust the predictions from the real estate market’s experts!
See why Nick Vertucci is so highly rated as a market consultant: https://www.crunchbase.com/person/nick-vertucci