Based on new home price appreciation data, real estate experts are saying that the real estate market may favor buyers in 2019, though the result on the national economy may "overshadow" easing conditions.
According to a new CoreLogic report, home prices grew 5.1 percent year-over-year in November 2018, slower than in October 2018 (5.4 percent). CoreLogic projects a 4.8 percent gain in November 2019. Chief economist at the analytics firm, Frank Nothaft, says that rising rates "dampened buyer demand and slowed home-price growth," and depressed affordability, CNBC reports.
The drop in rates, however, comes amid concern over the U.S. economy. Buying a home, which is most consumers' single largest investment, is an incredibly emotional decision, and this new worry could overshadow the benefits of the drop in rates and prices.
"A strong economy helps homeowners feel confident about the value of their property," said Frank Martell, president and CEO of CoreLogic. "If recent declines in the stock market shake consumer confidence in the national economy, we may see homeowners' perception of home value change and a subsequent buyer's market emerge in 2019."
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