As the saying goes, timing is everything! So, when is the best time to buy or sell? For those of you who are thinking of buying or selling a home in the near future, you might be wondering how the real estate market has shaped up so far this year. While all real estate is local, a few trends have emerged nationwide during the first half of 2019.
Baby boomers are choosing to age-in-place. They aren’t downsizing at the anticipated rate, so their homes are not opening up for new buyers. At the same time, homeowners who refinanced or purchased their home with mortgage rates in the low 3% range are sitting tight because they don’t want to lose those rates. Those conditions have led to a decline in the number of homes for sale.
Declining mortgage rates
Industry experts predicted mortgage rates would rise above 5% this year, but the opposite has occurred. Interest rates have been on a downward trend in 2019. At the end of June, Freddie Mac reported a 30-year fixed rate mortgage average of 3.73%, compared to 4.55% around the same time the year prior. Global market conditions and foreign investments in the U.S. economy are driving these declines.
Homeownership rates in the United States have been rising since late 2015, holding steady at around 64% of Americans. We’re in a healthy place now. Regulatory control ensures that those who qualify for a loan can truly afford to repay it and moderate price appreciation keeps homeownership possible for more buyers.
If you want to know more about what’s happening in the market, let me know. I have access to many valuable market reports that I can share with you.
Navigating the real estate market can be overwhelming and I hope to be a great resource to assist you. If you’d like to hear my expert insights on local conditions, even down to the neighborhood level, please contact me.