There is a lot of uncertainty heading into 2019 regarding the real estate market. With home prices descending, it is raising concerns that we may be headed toward another housing crash like the one we experienced a decade ago. Check out these three indicators that show the Real Estate market is staying strong this year.
The National Association of Realtors (NAR) is still predicting a Seller’s market in 2019, for the 7th year in a row. Buyers will continue to compete for a short supply of homes, and home prices will still be in an upward motion. One reason may be due to the fact that employment is strong, and wages are growing. NAR predicts that existing home prices will still rise 2.5% in 2019, bringing the national median home price up to $265,200. Compare this national prediction to our local Triangle trend which is already showing a 3.9% in the first month of 2019, with a median price at $259,800. We see that homes are continuing to appreciate, and mortgage rates are still low. Another interesting factor includes the crackdown on immigration, and added import fees which increase lumber costs, making it more challenging for builders to construct homes at competitive prices with existing homes. For a home owner trying to sell, this could result in less competition with new construction.
Low interest rates are helping Lenders qualify home buyers for a loan. This may cause some to think this could lead to another crash, but don’t let this scare you. Regulations are still intact from the last crash, and only those who have good enough credit in today’s market will qualify. Another positive trend is that first-time home buyers are getting more positive attention this year. Click on the link to see if you qualify for any down payment assistance or other home-buying programs:First Time Homebuyers.
When foreclosures rose a decade ago, and prices fell during the housing crash, homeowners found themselves in a “negative equity” situation – their homes were worth less than their mortgage amounts. Many just walked away from their houses which led to even more foreclosures entering the market. Nowadays, buyers/borrowers are in much better shape. However, there are signs that foreclosures are on the rise again in some areas. The trend is particularly visible in hurricane-hit cities. The difference this time is over 48% percent of homeowners have at least 50% equity in their homes, and with today’s current job and income growth, mortgage borrowers are in better position to stay current on their loans.
Nobody really knows for sure what will happen in the future, but one thing is clear, comparing today’s market to that of the crash 10 years ago is like comparing apples to oranges; they are nothing alike. Even though we are seeing a few of the same trends, we now have a much healthier economy. Team Anderson Realty can answer any questions you may have about the housing market in your area and can analyze what your home is currently worth. We are members of 5 MLS services in North Carolina, so no location is out of reach for us to provide you with a market analysis of your home. Erica Anderson, owner and broker of Team Anderson Realty, would love to sit down with you over a free cup of coffee to see if buying or selling is the right fit for you.