December Wishes

December Wishes

While it’s been fun watching my daughter (June) write and rewrite her Xmas list to Santa this year, its inspired me to think about what I hope for in the real estate world for 2018. So, before the hustle completely takes over, we want to share our “wish list” for the coming year.

Wish #1: Welcoming the First-Time Home Buyer
Most first-time home buyers have been on the sidelines but are expected to enter the market this year. There will be more choices than ever this spring and we’re putting together a short-list of areas we think will be great fits for a first-time home buyer. This will include a list of communities at various price points and features and can be tweaked by an individual’s need. I’ll have this list ready in January – ping me if interested. I will say the winter market is full of good deals. Now is a great time to crunch numbers, set a budget, and spend time researching neighborhoods. For our investors and first-time home buyers, we are keeping an eye on these properties

Wish #2: Interest Rates Remain Low
This is an easy one, we love low interest rates all year long! Rates ticked up 0.25% last week and Fed suggested we’ll see at least three rate hikes in 2018. We have been fortunate we have had minimal change in interest rates for several years now. Rates between 3% and 4% are excellent and we expect to see those for most of 2018 too. Historically – rates have been 5%+ so we’ve enjoyed low rates for the past few years. Check out this nifty chart I found that tracks the last 3 years:


Wish #3: Stabilize Rents!
The rental market showed some slow down as we ventured into Q4. Rents were down 7 – 10% with vacancies lasting about 30 days in some areas. This was unheard of for the past 8 years and most believe is a seasonal dip. As our portfolio grew this year, the majority of our tenants extended leases to multi-year terms as home ownership has become either unaffordable or tenants prefer the comfort that comes with leasing a home. This was good news for landlords as only a few experienced turnover. Heading into 2018, we’re expecting to see rents stay put or trend slightly upward by summer. Property investments continue to be a good source for passive income, built-in tax saving features, and offer rewarding appreciation. Most of the realtors and lenders I follow believe our market is poised for another great year.

Hope you have a wonderful holiday and happy New Year!