National Market Update May 2019
The question on everyone’s mind is what’s happening across the country in regards to home prices? Are we going up or down?
Buyers are wondering, Should I wait to buy a house, are prices going down? Sellers are wondering should I wait to sell because prices may go up.
Hi I’m Paula Quinn with RE/MAX Central.
I know, I get it, with all the negative press out there, who do we believe. Well, I say don’t believe me, and don’t believe the news, let’s look at what the experts are saying and what is actually happening right now.
A report that came out from the National Association of Realtors shows that we have an average of a 3.6% increase across the United States in home prices. That is considered normal appreciation. Here’s the deal, yes, we’ve seen higher over the past few years and that is because we were recovering from the crash. You can also see by this graph for Year over Year change in price we are seeing an average of 3% to 7.9% increase in almost all areas across the U.S. Now that’s what’s happening now but what’s in store for our future??? Well Lets see what the experts are forecasting.
The home price expectation survey which is a survey made up of a nationwide panel of over one hundred economists, real estate experts and investment and market strategists are predicting in Cumulative Appreciation through 2023.
We’ve got the Aggressive ones who are predicting about 28.3% , the Inbetweeners are anticipating about 17% and the super conservative who are predicting an overall cumulative appreciation of about 6 and a half percent. So the “experts” are anticipating a slow and steady normal appreciation of home prices over the next five years.
So if you’re thinking about buying it doesn’t look like home prices are going down anytime soon according to the experts. And if you’re wanting to sell, they are going up but so is the house you are going to purchase.
Let’s not forget about interest rates and how they affect buying and selling. According to the experts like Fannie Mae, Freddie Mac, the Mortgage Brokers Association and NAR, they are predicting interest rates to slightly increase through quarter four.
So remember buyers and sellers as interest rates increase you need to think about how they affect what your mortgage payment will be and also how many people will be able to qualify to purchase your home. Buyers, remember as interest rates increase so does your payment. Sellers need to be aware that the number of people who can qualify to buy your home actually goes down as interest rates increase.
So there you have it, the housing market is looking good.
Thanks, as always for taking the time to watch my videos – Please Like, Comment or Share with others you think may be interested. Stay tuned for some local market updates that I will have coming out in the next month! National Market Update May 2019
Paula Quinn with RE/MAX Central – Your Realtor For Life.
(612) 810-3907
Paula@remax-centralmn.com
www.thePaulaQuinn.com
