Mid-Year Housing Market Update: Three Things To Know Today
Shifting trends and industry-leading research are pointingtoward some valuable projections about the status of the housingmarket for the rest of the year.
If you’re thinking of buying or selling, or if you justwant to know what experts are saying is on the horizon, here arethe top three things to put on your radar as we head into thecoming months:
- Home prices are appreciating at a more normalrate: Home prices have been appreciating for about tenyears now. Experts at the Home Price Expectation Survey,Mortgage Bankers Association, FreddieMac, and Fannie Mae are forecastingcontinued growththroughout the next year, although it should beleveling-off to normal appreciation (3.6%), as we move into2020.
- Interest rates are low: Over the past 30years, the average mortgage rate in the United States has been8.27%, and rates even peaked as high as 18% in the 1980s. Today,at 81%, the rateis considerably lower than the historical 30-year average. Althoughexperts predict it may climb into the low 4% range in the nearfuture, that’s still remarkably lower than our runningaverage, suggesting a great time to get more for your money overthe life of your loan.
- An impending recessiondoes not mean there will be a housingcrash: Although expert research studies such as thosefound in the Duke Survey of AmericanCFOs and the National Associationof Business Economics, are pointing toward a recessionbeginning within the next 18 months, a potential recessionisn’t expected to be driven by the housing industry. Thatmeans we likely won’texperience a devastating housing crash like the countryfelt in 2008. Expert financial analyst Morgan Housel tweeted:
“An interesting thing is the widespread assumptionthat the next recession will be as bad as 2008. Natural to thinkthat way, but, statistically, highly unlikely. Could be over beforeyou realized it began.”
In fact, during 3 of the 5 last U.S. recessions, housing pricesactually appreciated:
Bottom Line
With prices appreciating and low interest rates available,it’s a perfect time to buy or sell a home. Let’s gettogether to discuss how you can take the next step in the excitingjourney of homeownership.