Home sale growth expected despite market headwinds

Home sales in Florida and throughout the country are expected to climb 3 percent in 2018, according to a projection from the May 2018 Outlook Report produced by Freddie Mac. This is despite the fact that home prices are surging, interest rates continue to rise and inventory levels remain low. By the end of 2018, the average interest rate on a 30-year fixed-rate mortgage will be 4.9 percent.

Home prices are projected to increase 7 percent in 2018 while home sales are estimated to be 6.32 million in that same time period. Economic strength is seen as a driver of demand despite a low number of homes on the market. For the first quarter of the year, GDP growth was 2.3 percent while growth for the year is expected to be 2.7 percent. Consumer spending is considered the impetus for this growth.

Buying a home may have many benefits. For example, most properties will appreciate in value over time. Furthermore, an individual generally has more control over how the property is used when owning it. However, there are many financial details to consider when purchasing a home. In addition to the cost of the property, it is important to determine how much work it will take to maintain.

Closing costs such as a down payment or commissions paid to a real estate agent may also need to be taken into consideration. Prior to a real estate closing, it can be a good idea to consult with an attorney. Legal counsel could help a client understand the terms of the deal or if there are any title issues to contend with. An attorney may also review a mortgage contract with the buyer.