With the first quarter of 2019 closed and housing market data pouring in, prospective home buyers and sellers now have an answer to the question: Will the usual high selling season return this spring?
CoreLogic Chief Economist, Frank Nothaft, said “…with the Federal Reserve’s announcement to keep short-term interest rates where they are for the rest of the year, we expect mortgage rates to remain low and be a boost for the spring buying season. A strong buying season could lead to a pickup in home-price growth later this year.”
With the softening of home prices in the past 6 months, consumer sentiment about their ability to buy has rebounded from 2018:
- Showings are up
- Mortgage applications are up
- The 30 yr fixed rate has fallen to around 4.0%
- The Federal Reserve has signaled no further rate hikes in 2019 (compared to 2-3 forecasted late last year)
- The job market is tight and pushing up income
- Contract signings are up
- Rents are rising again
According to a post by CNBC
, “The rental market spent part of last year catching its breath after several years of breakneck growth,” said Zillow economist Jeff Tucker. “Landlords are now coming to terms with the fact that rent cannot grow faster than income forever, and after that short correction we can expect a much more vanilla, slow-growth [rental] market going forward. As we enter the 2020s, the demand for rentals is projected to fall as many millennials move on to homeownership.”
So for those renters waiting on the sidelines, here’s a new question to ponder: With the benefit of hindsight, don’t you wish you’d taken the plunge into home ownership 5 or 10 years ago?
Home values are poised to advance further in 2019 so why wait? This is a great time to a buyer or seller!
I’ve helped a number of clients achieve the dream of home ownership that they previously thought impossible. Who do you know that needs my help? Please give me a call!
This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.