Inventory levels expected to rise in 2018

Inventory levels are expected to see the first increase in two years by fall, according to realtor.com®‘s 2018 housing forecast.

Across the country, Philadelphia is one of the top cities expected to see inventory levels increase. Most of the beginning inventory gains are expected to be in homes costing $350,000 and above. Existing home sales are expected to see a 2.5 percent increase, while single-family house starts are expected to raise 7 percent. New home sales are also expected to rise 7 percent.

Mortgage rates should increase as well, averaging 4.6 percent, eventually hitting 5 percent, the report suggested.

Homeownership is expected to increase among millennials, realtor.com® predicts they will take up 43 percent of those buyers taking out a mortgage this year, up from 40 percent in 2017. The projected homeownership rate is 63.9 percent.

Home prices are predicted to increase 3.2 percent year-to-year, down from 5.5 percent from 2016 to 2017.

In Pennsylvania, six metros made the top 100 sales and price growth forecast. Harrisburg-Carlisle landed in 49th, with sales expected to grow 2.5 percent, and prices expected to rise 3 percent. The Jersey City area followed in 54th, sales are expected to grow 1.16 percent, with prices predicted to increase 4.15 percent. Pittsburgh was right behind, in 58th place, with 3.53 percent predicted sales growth, and 1.62 percent predicted price gains.

The Allentown-Bethlehem-Easton area came in 65th, sales are expected to grow 4.12 percent, and price gains are predicted to rise 0.57 percent. Scranton-Wilkes-Barre landed in 82nd, with sales expected to grow 1.18 percent, and prices expected to go up 1.18 percent. Finally, the Philadelphia area landed in 83rd, with sales predicted to grow 3.78 percent, and prices expected to go down 1.04 percent.