In the past few years, perspective home buyers grew through economic recovery and historically low mortgage rates. Pairing this with steady job growth and tightened inventory, a market for sellers was established.
But it worsened affordability for buyers. A report showed that the S&P Case-Shiller index of US home prices rose in September past the July 2006 level — right before the housing boom topped out — to an all-time high.
It was common for sellers to obtain multiple bids; sometime even selling their home over asking price in this market. These conditions are foretasted to change, however. Which is what we are seeing close to home here in North Dakota, where there is somewhat of a good deal of inventory on the market. This allows buyers to have more negotiating power during the real estate purchase.
That forecast depends on a meaningful increase in housing inventory levels, which would slow the pace of house price increases.
With no certainty that this slowdown will happen quickly enough to shift the balance of power between buyers and sellers by 2019. One of many issues that affect the housing market is that Treasury and mortgage rates have increased slightly. Significantly higher rates would worsen affordability in the coming year to levels not seen in this economic cycle, according to Bank of America Merrill Lynch's forecast.
We can't predict mortgage rates, but we can do our homework by talking to multiple lenders, working with a local real estate agent and obtain a home in 2019 that will fit your family's budget.
Author:Tisa Peek Phone: 701-214-1188 Dated: January 4th 2019 Views: 177 About Tisa: Tisa has been in sales for sometime and comes to you with a passion for helping the client! She is o...
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