With the new tax law in effect, the National Association of Realtors (NAR) has released estimates on how home prices will trend in 2018 for each state. NAR considered the following four factors as driving forces of the housing market in 2018:
- Current housing market conditions and momentum
- New tax law impact
- Interest rate effect
- Employment and construction scenarios
One important caveat to remember: “Real Estate is Local” … and that means that the Main Line and surrounding areas do not necessarily trend “on average” with the rest of PA. In general, the greater Main Line area consistently shows slightly stronger price stability and growth than other parts of PA. While the NAR home price forecast for Pennsylvania is essentially flat, other local estimates indicate some slow growth in the 1% – 3% range.