The road ahead for both homebuyers and home sellers may be rough, according to a new housing forecast for 2019. The report cites rising home prices and interest rates as major pain points for both groups.
Overall affordability is expected to get worse in 2019, keeping many buyers and sellers out of the market, despite any supply growth that may occur, according to Realtor.com's forecast. Getting down to brass tacks, the real estate platform estimates mortgage interest rates averaging 5.3 percent before hitting 5.5 percent at the end of the year, translating to an average home purchase that is 8 percent more expensive per month over the last year, HousingWire reports.
“Inventory will continue to increase next year, but unless there is a major shift in the economic trajectory, we don’t expect a buyer's market on the horizon within the next five years,” realtor.com Chief Economist Danielle Hale said. “Unfortunately for buyers, it’s only going to get more costly to buy, especially the most-demanded entry level real estate,” Hale said. “To be successful, buyers should think through how they’ll adapt to higher rates and prices.”
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