According to Edward Jones senior investment strategist and former Redfin chief economist Nela Richardson, buyers may have the advantage in real estate in 2019, but warns not to expect another record year of sales.
In one aspect of the market, buyers and sellers may both see savings: in real estate commission fees. Says Richardson in an interview with CNBC, "I understand the value of the real estate agent, but there is a point where technology can improve and make that technology more efficient, lower cost and that is the ultimate hope for homebuyers and sellers going into tomorrow," she said. "But we're not there yet."
Thus far this year, the 30-year-fixed has averaged 4.46 percent, down from 4.54 percent in 2018. The dip in interest rates, combined with modest gains in home prices, have helped turn some parts of real estate into a buyer's market – but one clouded by at least some uncertainty. "Going forward, it won't be the record number of sales we saw in 2017, but we have seen mortgage rates come down considerably over the course of even the new year," Richardson said. "That is a good advantage for buyers."
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