Most people (including you) want to know, “Where is the market headed in 2019?” Well, I’m glad you asked.
Where we’ve been
It’s hard to believe it’s been 10 years since the start of the last recession. The real estate market took a major hit, we were in crisis mode, and foreclosures and short sales were at an all-time high. To spur buyer activity, the government offered first-time home buyer tax credits (Remember those?) and ridiculously low interest rates. These efforts certainly helped to correct the housing market over time. But, we know the housing market is cyclical. What goes up must come down. And what goes down will go back up. Fast forward to today.
Where we are
Prices have been appreciating across the country. Buyer demand is high, and we’re seeing multiple offers in most markets. Inventory is well below the 6-month norm, which is the main culprit for those bidding wars. Also, interest rates have started to increase, but they are still favorable. One important note is this next cycle is nothing compared to the “boom and bust” we experienced a decade ago.
Where we’re going
Looking at 2019, analysts believe price appreciation will start to slow down but won’t necessarily decrease home values. Interest rates will gradually increase, which may lessen buyer demand. Also, those who went through a foreclosure or short sale are starting to explore homeownership again.
So, what does this all mean? If you’re thinking about selling, you should think about selling now since buyers are ready to pull the trigger and demand may shift in 2019. And if you are a ready and willing buyer, it may cost you more money to get into your home if you wait much longer.
So, there you have it. As always, don’t hesitate to contact me at 267.603.1226 or firstname.lastname@example.org for any additional questions. I’m here to assist you with all of your real estate needs!