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."
Advertisement
Related Stories
Remodeling
Home Renovation Trends Report Shows Increase in Project Spending
A recent Houzz survey finds that the median spend for kitchen and primary bath projects jumped in 2022 and increased again in 2023
Trends
These Design Trends Get the Thumbs-Down From Boomers
Whether it's garage doors dominating a home's façade, outdated smart home features, or walk-in closets off the bathroom, homeowners in their 60s, 70s, and 80s have opinions
Trends
New-Home Trends: Home Sizes Shrink Further and Personalization Has Power
The National Association of Home Builders' latest new-home trends report shows homebuyers prefer fewer square feet, more personalization, and more tech