Mubasher: Economists expected the US housing market to perform better in 2018, predicting that home prices will grow at a slower pace, providing more homes for sale and higher sales.

The median forecast among six industry and lender groups suggested a 4.1% increase in existing home prices across the country in 2018, after rising 6.3% in 2016 and continuing its fast pace during 2017, a report by NerdWallet.com showed.

Realtors.com also anticipated the housing supply shortage to ease during 2018, with the median estimate suggesting that resales of existing homes could rise 2.5% to 5.6 million units, while new home sales are expected to jump 7% to 653,500 single-family houses.

However, 2018 could have a negative impact on homebuyers with the mortgage rates likely to rise, driving affordability rates lower.

The 30-year fixed mortgage rates will average 4.7% in December 2018, compared to 4.07% in November 2017, according to a six-analyst forecast average in a CoreLogic report.

But if mortgage rates and prices rise in 2018, homes will be less affordable with the middle-class families still having some financial issues, according to an analysis by Urban Institute.

Analysts also reckon that the US tax reform, scheduled to come into effect starting January 2018, will have a huge impact on the housing market, affecting both homebuyers and owners.