Fall Market Trends
The weather is finally cooling down, but does that mean the same for the market? Not necessarily. In the beginning of 2019 the rise in home prices is starting to slow and mortgage rates dipped to unexpected lows. Here are some market trends that are being predicted for the end of 2019:
- Millenials are yearning to become home owners.
- Driving the market because they are hitting prime home buying years.
- Made up 37% of all home buyers and 20% of sellers (National Association of Realtors)
- Took on 45% of new mortgages
First time home owners rule the market
- Year of the first time home buyer
- Expect less competition than last year.
- Still a sellers market.
- No need to hurry because the imbalance of supply and demand.
Inventory will improve slowly
- According to Trulia inventory is rising for starter homes and trade up properties but not enough to satisfy demand especially in the lower price points.
- Increased inventory will also equal increased prices upwards of 10% but at a slower pace then before.
Home Prices Increasing
- Forecasters predict 5.6% uptick by May 2020 (CoreLogic) due to lack of inventory in certain price levels.
Mortgage Levels to Stay Low
- Hit lowest point since 2016 averaging 3.8% (Freddic Mac)
- Rates could even go lower as Fed acts to lower rates to increase economic growth.
- Mortgage rates could finish out the year around 4%, lower than 2018 4.54% year average.
Buyers can take their time
- 15% of offers in April 2019 sparked a bidding war (RedFin), down 60% from the previous year.
- Overall inventory of homes is steady and price appreciation has leveled off as well as steady mortgage rates consequently people don’t feel any urgency to buy.
Markets to vary by location
- Some regions of the country offer better prospects for first time home buyers (the largest segment in the market). Most noteworthy, places like Memphis, Oklahoma and Pittsburgh have up to 70% of home inventory within financial reach of first time home buyers.
Nerd Wallet – 9 Housing and Mortgage Trends for the Rest of 2019.