Your market report for February 2019 is hot off the press; find out how our market is doing right here.
First, let’s discuss the housing supply. In the last 12 months, six months of those 12 were up year over year, and one month broke even at 0%. That’s a good sign, since lots of inventory will bring competition to the market. Now is a good time to get your for-sale home exposed to the 2019 buyers who are out there looking for homes.
Next, our mortgage rates: We are currently at the same level we were last April, which is great news, too. They had been going up fairly dramatically at the end of last year, and that’s slowed up a lot of the home buying process. The housing market is obviously very sensitive to mortgage rates; softer sales in December reflected consumers’ search processes and contract signing activity when previous months’ mortgage rates were higher than today. Now that rates are lower, some revival in home sales is expected going into the spring, which is great news.
Total home sales are expected to slowly regain momentum, increasing to 6 million in 2019 and 6.25 million in 2020. In 2019, we expect home sales growth to be mostly driven by existing home sales, while new home sales are expected to be almost flat. Also, the best home price growth is likely in our rearview mirror, and that market is likely to skew towards transaction growth, and ultimately provide a more stable foundation for affordability in the housing market.
Next, we’ll move onto the projected home price percentage appreciation of companies we respect and follow. The quarterly Home Price Expectation Survey, Ivy Zelman & Associates, the Mortgage Bankers Association, Freddie Mac, the National Association of Realtors, and Fannie Mae are all projecting that price will continue to appreciate over the next two years, just at lower levels.
Now, let’s compare how many buyers are trying to buy versus the number of sellers trying to sell. That ratio is demonstrated in the inventory levels, the months’ supply of inventory. Though our stats on inventory levels are two months behind at the moment, we can see that inventory dropped dramatically since the middle of last year. There’s less competition right now for the number of buyers in the market, and I think that the number of buyers is going to continue to increase.
As a matter of fact, NerdWallet did a study that found that approximately 32% of Americans plan to purchase a home within the next five years; we’re seeing that there’s going to be continued purchaser demand.
If you’re even just thinking that you’ll put your home on the market this year, now is the time to start the process! One way to start is by coming to my next home seller seminar, which is right around the corner on April 6. Just visit www.HomeSharkSeminar.com for details. And if you would like a free copy of my playbook, “How to Fight the Home Selling Sharks Lurking In Your Home Right Now,” or if you have any questions for me, don’t hesitate to reach out. I’d love to speak with you.