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New economist analysis of market conditions says that housing in 2019 is likely to have more activity than was previously anticipated, with stronger home sales and price appreciation.

Despite the winter chill in real estate, Realtor.com economists say that lower mortgage rates will help ease affordability pressures. Based on the latest Freddie Mac data, the economists say that rates are now more likely to hit 4.5 percent, instead of a 5.5 percent rate from earlier financial forecasts. "It's still going to be a lukewarm year for the housing market," says Danielle Hale, chief economist of the real estate platform. "We're going to see higher prices and slightly higher home sales than we expected. But home sales are still going to decline slightly as a result of the housing slowdown. There's a gap between what sellers are looking for and buyers are hoping to pay."

The downside for buyers—and upside for sellers—is that prices are expected to rise more than Hale's team originally forecast, going up 2.9 percent in 2019 instead of 2.2 percent. That's because the swelling ranks of buyers motivated by those lower mortgage rates will increase demand—and therefore prices.

Meanwhile, realtor.com's economists predict the number of home sales will almost hold steady, dipping just 0.3 percent. They originally believed the number of sales would fall by 2 percent.

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