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.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
