Now that we’re well into 2019, it’s time to make a few predictions for what the rest of the year will hold for our market.
As we move further into 2019, there is a lot of uncertainty about what lies ahead. It’s predicted that we’ll see two more rate hikes in the coming year, but what does this mean for buyers and sellers?
Well, actually, things are not as dire as some sensationalist headlines might have you believe. Rates are still at historic lows, meaning it’s still possible for buyers to secure a great deal.
That said, rate hikes still do have an impact on buying power. For every 1% increase, affordability drops 10%. In other words, buyers who can afford a $250,000 today may only be able to purchase a $225,000 in the future.
And given that appreciation is also set to slow, sellers, too, will need to be on their toes. If you’re interested in selling your home this year, you may want to make a move soon.
As interest rates rise and appreciation slows, our market will become less active, but certainly won’t stall altogether.
The bottom line is that we aren’t in for a repeat of the recession we saw more than a decade ago.
There have been far fewer foreclosures, lenders have become more strict, homeowners have greater equity, and the job market and economy are both going strong. These four factors mean our 2019 market is sure to remain strong, despite the slight drop in activity.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.