Whether you’re looking to sell or buy a home this year, it’s important to look at your local real estate market in addition to national trends since predictions can vary from area to area.
At the end of the day, no one really knows how things will work out with home prices, interest rates, and inventory but here’s what we’re keeping our eyes on in the housing market as 2019 progresses:
1. Low Inventory ReliefThe low housing inventory has been a pain point for many home buyers across the U.S. over the past few years. In fact, the supply of houses hit an all-time low in 2017 and still hasn’t bounced back. Because of this, home prices increased and many home buyers were caught in bidding wars.
In short, home prices are expected to rise on a national basis in 2019 but at a slower pace than in years past. This may bring some relief to home buyers, especially as employment numbers remain strong and there’s a healthy wage growth as well.***
Low interest rates have been the norm for the past 10 years so it can be alarming to see rates rise. We completely understand that fluctuating interest rates are always a hot topic for potential home buyers! As we all know, interest rates are unpredictable and can be difficult to pin down. Many industry analysts expect the average rate for a 30-year fixed rate mortgage will hit 5.0% in 2019** which is still historically low, even though this is a new reality that can be stressful for first-time home buyers.
Take note of what’s going on in the housing market on a national level, but more importantly watch home prices in your local area to see if prices are moving higher or lower depending on demand or inventory levels.
If you’re looking for a home in the next 90 days, it’s smart to become a Churchill Certified Home Buyer and get Rate Secured so you stand out from your competition. This allows you to look for the right home without worrying about interest rates or your monthly payment rising.
Remember to keep in contact with a Churchill Home Loan Specialist in your area so you can stay informed with interest rate movements and be your guide to help walk you through the mortgage process.
Sources:* https://www.usatoday.com/story/money/2018/12/21/housing-market-predictions-2019/2218094002/, ** https://www.realtor.com/research/2019-national-housing-forecast/, *** https://finance.yahoo.com/news/slowing-u-housing-market-small-151034842.html