Current Housing Market

The last few months of 2018 saw a slowdown of new construction homes in the United States. Simultaneously, there was a short supply of existing homes for sale. Consequently, housing prices rose to a point where we saw bidding wars.

Conversely, many waited and watched the housing market, deterred by the high prices. The Current Housing Market is still in a state of flux as we enter 2019.

Rising Mortgage Rates

You see the year 2019 starting on a bit of a “Catch 22.” In anticipation of the continued upward trend in mortgage rates, some individuals desire to buy a home sooner, rather than later. However, with housing market activity flatlining, that desire is somewhat stifled.

Consequently, many see these rising rates as the single culprit in the apparent housing market quash. 2018 saw a full-year average of about 4.54% for a 30-year fixed-rate mortgage. Therefore, that’s the highest since 2010.

What’s the mortgage rate forecast for 2019? It looks like rates are rising, according to experts’ forecasts. The “low” 30-year fixed-rate full-year average forecast is 4.8%, per Doug Duncan from Fannie Mae. The “high” 30-year fixed-rate full-year average forecast is 5.3%, per Danielle Hale from Realtor.com. 

Current Housing Market

It looks like 2019 brings a continuing damper on the housing market with rising mortgage rates and home prices.

Experts also believe that economic uncertainty plays a role in the strength of the housing market. For example, global trade tensions, stock market volatility, and the government shutdown doesn’t help.

Consequently, potential home buyers are reluctant to make a large purchase, such as a house.

As we’re still early in the year, only time will tell if the decline in home sales is temporary. Most real estate experts agree that the housing market is stalling, but do not anticipate a long term slump.

If buying a house is still on your to-do list in 2019, I’d love to help you find the perfect one for you and your family. If not, then maybe a home renovation is something you consider a safer bet, given your personal circumstances. My blog article, “Home Renovations With Best Return” gives you some ideas.

Dana Davis
Dana Davis Properties/DHR (Distinguished Homes Realty)
Phone: (386) 569-4998