The new tax law will impact home sales due to new limits in mortgage deductions, but it’s just one factor. Nationally, the economic forces that have always shaped the housing market will continue to be felt: Regions with low inventory and strong job markets will see the highest demand—and highest price appreciation—for available homes.
Colorado is in that category, and according to the National Association of REALTORS® (NAR), is projected to lead all 50 states for home-price appreciation in 2018. The top-five states where housing prices are expected to rise more than the average this year are:
- Colorado 5.9%
- Utah 5.7%
- Arizona 5.6%
- Washington 5.5%
- Idaho 5.5%
NAR created an interactive dashboard for viewing projected price appreciation nationwide. The tool is fun to use—just hover over a state to see the 2018 projection. It’s also comprehensive, taking into account not just the new tax law but also current housing conditions and momentum, local employment factors, and the impacts of rising interest rates.
View 2018 projections HERE.