2019 Homebuying Conditions
The housing market is turning in buyers' favor, but entering the market, especially at the entry level, remains difficult for most home shoppers.
By region, homebuyers are finding more affordable homes in the South and Midwest, whereas buyers in the Northeast and West "should first consult with an accountant," CBS News reports. The new tax law limits homeowner deductions in markets with high property taxes, and though 97 percent of the nation's owners can fully deduct mortgage interest payments and property tax, 30 percent of New Jersey owners, for example, surpass the tax limit, according to National Association of Realtors' chief economist Lawrence Yun.
Yun predicts just a 2 percent rise in home prices this year. "Price increases will be difficult to maintain after several years of sizable gains," said Yun. Housing prices have risen 52 percent since 2010 when the nation began to recover from the real estate crash. Yun's prediction is in line, but not in total agreement, with other projections. Global analytics firm CoreLogic forecasts this year's average home price increases will slow to 3.4 percent, down from 5.8 percent in 2018. Yet both projections adhere to the same trend: Gains generated since 2010 are unsustainable. And if proved right, homebuying could become easier for millennials who are starting families and want to purchase homes.