We are three weeks into the New Year and as busy as ever. 2017 was a historic year in real estate with home sales being higher than they had been in 10 years.  Here are 5 things you should expect to see in the housing market in 2018.

1. Home Prices Will Continue To Rise

Real Estate Express says you can expect home prices to continue to steadily rise. Has the increase in the market price of homes reached unsustainable levels? Many industry experts are saying not to worry about the market reaching bubble proportions in 2018.

2. Mortgage Rates Will Rise

You can expect an increase in mortgage rates in 2018 according to Market Watch. CoreLogic is predicting that the 30-year fixed will average 4.7% in December of 2018. This rate averaged 4.07% in November of 2017.

3. Homes Will Become Less Affordable

Homes will be less affordable. If everything goes as predicted with mortgage rates rising and home prices steadily increasing, and as a result you can expect an average monthly mortgage payment to substantially rise.

4. Millennials Will Gain Market Share in 2018

Realtor.com predicts that millennials may reach 43 percent of home buyers taking out a mortgage by the end of 2018. This number is up from an estimated 40 percent in 2017.  Danielle Hale, chief economist for realtor.com, claims that “millennials are at that point where they’re seeing their incomes grow, and that will help them take on bigger mortgages.”

5. Tax Reform Could Change Everything

Tax reform could change everything. The U.S. House has passed a tax bill, and the Senate likely will vote on one soon. Hale reports that “if a version of tax reform does pass with the current provisions affecting real estate,”  she would expect to see fewer home sales, and as a result, declining home prices. With the House and Senate versions still being debated, this prediction from Realtor.com can be categorized as a wildcard.