Mid-Year Housing Market Update: Three Things to Know Today
Shifting trends and industry-leading analysis are pointing toward some beneficial projections about the status of the housing industry for the rest of the year.
If you’re thinking of buying or selling, or even if you just want to know what experts are saying is on the horizon, here are the top 3 things to put on your radar even as we head into the coming months:
- Home prices are appreciating at a more normal rate : Home prices have already been appreciating for about ten years now. Professionals at the Home Cost Expectation Survey, Mortgage Bankers Association, Freddie Mac, plus Fannie Mae are forecasting continued growth through the next year, although it should be leveling-off to normalcy appreciation (3. 6%), as we transfer to 2020.
- Interest rates are low : Over the past 3 decades, the average mortgage rate in the United States continues to be 8. 27%, and rates actually peaked as high as 18% in the eighties. Today, at 3 or more. 81% , the rate is considerably lower than the historical 30-year typical. Although experts predict it may climb into the low 4% range soon, that’s still remarkably lower than the running average, suggesting a great time to get more for your money over the life of your loan.
- An approaching recession does not indicate there will be a housing crash : Although expert research studies such as these found in the Duke Survey of American CFOs and the Nationwide Association of Business Economics , are pointing toward a economic downturn beginning within the next 18 months, a potential recession isn’t expected to be driven from the housing industry. That means we likely won’t experience a disastrous housing crash such as the country felt in 2008. Professional financial analyst Morgan Housel tweeted :
“An fascinating thing is the widespread assumption the next recession will be as poor as 2008. Natural to think this way, but , statistically, highly unlikely. Could be over before you realized it began. ”
Along with prices appreciating and low interest rates accessible, it’s a perfect time to buy or sell a home. Let’s get together to discuss how you can take those next step in the exciting journey of homeownership.
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