Redlands Real Estate Predictions: A ‘Healthy’ Market on the Rise?
If you are thinking about buying a home in Redlands, California in 2018, you should know that home prices for single-family residences are still on the rise. Recent real estate market forecasts suggest they will continue heading in that direction.
Inventory is tight, and this will affect anyone planning to buy a home in Redlands through 2018. Moving into 2018 the most significant determining factor for home prices will be the interest rate. If the rate increases dramatically it will more than likely stall the rise in prices for the area.
Buying a Home in Redlands in 2018
These are significant trends for any person who is planning to buy a home, whether this year or next. And the question remains: Should you buy a house in Redlands now, or wait until 2019?
The city of Redlands housing market showed a slight increase in average home values for 2017. In the first quarter of 2017 the average home price was at $361,345, and at the end of the fourth quarter, the average home price in Redlands was $384,562. That was 6% higher than the same time last year.
Zillow research team logged an even more significant year-over-year price increase. By their estimate, housing values in the city rose 8.9% from August 2016 to August 2017. Their predictions for the Redlands real estate market suggest that prices will continue increasing, possibly by around 5.1% over the next 12 months ending in the third quarter of 2018.
Given the current supply-and-demand state, most economists are predicting additional price gains for major cities across California. As a result, those who delay their home-buying decisions until later this year or 2019 could meet higher housing costs.
Redlands House Inventory Is Tight
If you choose to buy a home in Redlands in 2018, you should be ready for some competition. This is the result of low inventory within the housing market. Inventory should remain relatively small because so many homes have been bought and sold in the last 18 months in the city.
This is a concern nationwide as well. Housing markets throughout the country are currently facing supply shortages that are compelling buyers to compete, often overbidding above market value, for limited homes.
California State, and particularly in Orange and San Diego Counties, are examples of where we see a lot of shortages. But it’s affecting home buyers in Redlands as well.
There aren’t enough homes listed for sale in Redlands and elsewhere across the state to meet the current level of demand from buyers. This is why we have seen house values rise sharply and steadily over the past couple of years.
Builders are doing their best to keep up with the demand for new homes in Redlands. There is talk within the city of approving more new communities. Here is a list of developments which have already broke ground.
On the North West Side of Redlands, there is a new home development of single-family residences in a community called the Grove, the starting price for these homes is in the mid 400s. Also on the North Side, but further east near the Redlands Airport new homes are being built in the North Ranch community. These homes start near the mid 500s.
On the South East side, we offer lovely new luxury Redlands houses for sale. They are being built in the Cielo Ridge community starting at just over a million. On the South West side of Redlands near Loma Linda, there is a fabulous new community under construction called Citrus Lane. These modern homes art starting in the mid 600 price range.