Why 2019 won’t bring about more affordable homes

Despite slowing price growth and slowing sales in many parts of the U.S., the national housing market is still going to become less affordable for many buyers next year, thanks to both rising prices and rising mortgage interest rates, according to a new forecast from Realtor.com. That means a true buyer’s market is not on the horizon.

Though the forecast, out today, offers a few glimmers of hope for buyers, it paints an overall dour picture of the 2019 housing market as both buyers and sellers are forced to adapt to more expensive housing transactions.

Perhaps most significantly, Realtor.com expects mortgage rates to average 5.3 percent in 2019, and to hit 5.5 percent by the end of the year. That increase comes after multiple interest rate hikes in 2018, and will ultimately make buying a home 8 percent more expensive next year, according to the forecast.

The rising cost of buying a home will likely slow price growth, which Realtor.com expects to average 2.2 percent, and lead to a modest increase of 7 percent in home inventory.

Danielle Hale, a Realtor.com economist, suggests overall 2019 will continue the softening trend that began in 2018.

“It’s going to be a tougher year in some respects,” Hale said.
Home price gains slowed to 5.5 percent in September, year-over-year, according to the latest S&P CoreLogic Case-Shiller National Index. Year-over-year growth was down from 5.7 percent last month and the second time in 12 months price gains fell under 6 percent.

Author: danswingblog

Welcome to my Blog site. I don't provide this information to boast, I humbly provide this, so you are informed of my qualities and experience. Since the first of 2017 Dans averaged close to $1,000,000 in sales monthly. Dans accomplishments lend wisdom and credibility that I'm proud of. An informed understanding of who you elect to represent you is as important as the investment you hold in your hands. Dan has celebrated over 17 years as a full time Realtor. Successfully listed and sold homes well through the 7 figure market. Advises and assists clients with challenging Portfolios! Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation of Integrity, Expertise, and Focus. Our customers deserve the best. Currently a "FULL TIME" Realtor listing and selling homes in Tampa Bay Golf and Country Club and provides B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to RE/MAX Marketing Specialist in January 2012. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Received license in 2000, took the class to sell his own properties, coerced by instructor to pursue an active license. Assist residential and commercial brokers, investors and individuals with real estate needs. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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