We’ve finally reached the other side of the housing bubble and the Clarksville real estate market now looks quite different. In fact, most of the U.S. is in a similar situation, ,and many markets are now facing inventory shortages.
This has left potential sellers hesitant to list their homes for fear that they won’t find a new home to purchase. It’s also leaving first-time home buyers with fewer options than ever.
As we start 2018, these factors will demand creative responses from builders, buyers, and homeowners. Here’s what we can expect to see in the real estate market for 2018:
Lower inventory has been an ongoing issue across the country and is a major factor in escalating home prices. Low inventory has also served up an obstacle for first-time homebuyers who struggle to come up with a minimum down payment.
This younger demographic will continue to have troubles gaining entry to homeownership as they compete against more experienced home buyers who have also recently profited from a home sale and have become better market negotiators.
With the increase in home prices, new first-time and lower- to middle-class home buyers are yearning for more affordable options. Builders are finally listening, so we should see more entry-level homes builg built in most markets, including Clarksville.
Given the inventory shortage, current homeowners should feel confident putting their homes on the market, but many are experiencing a fear of finding a new home. This is causing a lot of homeowners to choose to remodel their current home instead of playing the market game. We predict more investments will be put toward making older homes look and feel new.
Although most millennials would prefer to live in a more urban location with access to shopping, tech-centric job opportunities, and entertainment, we will see them begin to migrate to the suburbs. With more affordable home prices, the suburbs will benefit from this movement and as a result, will increasingly add the amenities, like coffee shops and yoga studios, that attract these potential residents. Watch for the businesses and millennial population to increase, in Clarksville and beyond.
Expect to see home design-trends driven by both Boomers and Millennials.
For the aging boomers, this includes features to accommodate necessary additions for “aging in place” in the future — like wider hallways for wheelchairs, single-floor residences and features like shower grab bars or lower counter tops.
For the Millennials, the focus is on a home to accommodate a family, so wider hallways for strollers, play rooms, and fenced yards.
While the entry-level home market may see price increases due to the larger potential buyer pool, overall home-buyers can expect to see prices moderate. For most marketing, the days of rapid price increase are ending. Most of the slowing appreciation may be more evident in higher price homes as more inventory becomes available and fewer buyers opt for larger homes.
Wherever you are in your home ownership process – whether you are buying or selling – call on the experts at Chief Knows Ft Campbell Homes to help. We’re here to serve whatever your needs may be.