What Is The Real Estate Forecast For 2018?

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By: Jessica Rosato Luxury Broker Associate Nestler Poletto Sotheby’s International Realty Special to the Boca and Delray newspapers

With the 2018 season upon us, what can we expect from the real estate market this year? We are coming off 2017, which slowed slightly due to Hurricane Irma, but things have since picked up.  According to the Realtors Association of the Palm Beaches, home prices have continued their upward trend with the median price for single family homes in Palm Beach Country increasing 8 percent since last year to $345,000 and closings up 2 percent as well.

With over 30,000 people moving to Florida each month, it’s hard to imagine that 2018 won’t follow suit. With our breathtaking beaches, ideal weather, varied cuisine, and access to incredible art, culture, shopping and more, South Florida is on the map as people flock here to take advantage of all it has to offer.  Delray Beach, our “village by the sea,” attracts people from all over the world – it’s charm and overall appeal and benefits make it a great place to open a business, raise a family and simply enjoy the highly sought-after lifestyle it provides.

As we hone in on the current real estate market, we can see that quality, well-priced inventory continues to be low.  Inventory across the United States overall is tight, and that also holds true here in Palm Beach County. We can also see just from driving around the area, that new construction shows no signs of stopping. Rentals are even in very high demand. It would be wonderful to see the trend towards more affordable new construction continue which hopefully 2018 will bring to the table.

I’ve also seen many potential sellers make the decision to remodel versus selling their homes.  With few competitively priced homes to choose from, many owners are opting to renovate their current residence versus trying to find a “better” replacement as the cost to purchase another one of better value and location is hard to come by.  In many circumstances, it seems to make more sense to stay where they are versus selling. Perhaps 2018 will deliver new realistic options that will allow potential sellers the opportunity to make a comfortable move.

Interest rates, although higher than last year, are still historically low overall.  This makes for a favorable environment for buyers who want to purchase a home in 2018. Digital lending is also on the rise in effort to streamline the lending process with further ease. This type of assistance could really be a game changer in 2018. Not to mention the tax benefits of living here in Florida.  With no individual income taxes and no estate taxes, people take note of Florida and the financial benefits it offers. If the new proposed tax plan passes, Florida is going to be even more attractive to people in states like California, New York, and Illinois as under the new tax plan those states will no longer be able to deduct very high state income tax from their federal returns. This is a very big deal and could be a big boost for all Florida listings. Devastating weather is a factor all over the United States as people are opting to move versus rebuild, and Florida is a very attractive alternative.

It will be interesting to see what 2018 holds. I certainly don’t have a crystal ball, but I do know that our local real estate market is strong, that Florida is in high demand, and that if the price is right, homes are selling.

About Jessica Rosato

Jessica Rosato is a Luxury Broker Associate for Nestler Poletto Sotheby’s International Realty of Delray Beach. As a concierge realtor, she utilizes her superb customer service skills, attention to detail, honesty, stellar work ethic, negotiating skills and keen understanding of the luxury real estate market in Palm Beach County to create experiences of a lifetime. Jessica is a Dartmouth graduate and holds a Masters of Fine Arts from Pratt Institute. She is a member of the Delray Beach Chamber of Commerce, the Women’s Council of Realtors and the Institute for Luxury Home Marketing.  She is also involved in local charities, specifically those that benefit the Achievement Centers for Children and Families in Delray Beach and the American Cancer Society. Visit her website at www.bocadelrayluxury.com.