Homes sales are expected to pick back up again in 2019, but the rate of appreciation is expected to slow down.
How is our housing market expected to perform in 2019? To answer that question, let’s first look at where homes sales are at right now.
Year over year, existing home sales have declined across every major region in the U.S. I’m not worried about this, though, and neither is Michael Fratantoni, Chief Economist of the Mortgage Bankers Association. He recently said that homes sales are expected to rise again in 2019, though the pace of home price growth will slow down slightly.
Along with the Mortgage Bankers Association, the National Association of Realtors, Freddie Mac, and Fannie Mae all project home sales to be lower by year’s end than they were in 2017. However, they also all project the number of homes sales in 2019 to surpass 2018’s total.
Despite the fact that home price growth is expected to slow down, prices are still projected to appreciate for the next few years. In other words, your home’s not losing value—the only thing that’s changing is the speed with which you’re gaining equity.
It’s also important to understand that the rate of appreciation varies for each price range. Over the last year, the lower-priced homes have appreciated faster because there isn’t as much inventory as there is in the higher price ranges.
While appreciation is decelerating overall, more homes are coming on the market. This is why, if you planned on putting your home on the market next spring, you might be better off listing sooner. Once spring hits, inventory will increase substantially and you’ll have more competition from other sellers. From now until March, though, inventory will be low and buyers will have fewer options. Since supply will be low, demand will be high, so you’re more likely to get a better price for the least amount of hassle.
Also, remember that interest rates are rising, so the sooner you sell your current home and buy a new one, the lower your mortgage payment will be. This makes now a good time to sell and buy.
If you’d like to put your home on the market soon, there are many ways we can help you. If you visit freeroombyroom.com, you can sign up for one of our free room-by-room reviews of your home and find out what you need to do to prepare it for buyers. You can also attend my next Home Selling Sharks seminar next January. For more information on that, you can visit www.homesharkseminar.com.
As always, if you have any other questions about our market, don’t hesitate to reach out to me. I’d love to help you.