Here are the top three things you should know about the housing market as we head into the remaining months of 2019:
- Home prices are appreciating at a more normal rate. Home prices have been appreciating for about 10 years. Experts at the Home Price Expectation Survey, Mortgage Bankers Association, Freddie Mac, and Fannie Mae are forecasting continued growth throughout the year. Although, it should be leveling-off to normal appreciation (3.6%), as we move into 2020.
- Interest rates are low. Over the past 30 years, the average mortgage rate in the U.S. has been 8.27%, and rates even peaked as high as 18% in the 1980s. Today, at 3.81%, the rate is considerably lower than the historical 30-year average. Experts predict it may climb into the low 4% range in the near future. But that’s still much lower than our running average.
- An impending recession does not mean there will be a housing crash. Although expert research studies such as those found in the Duke Survey of American CFOs and the National Association of Business Economics, are pointing toward a recession beginning within the next 18 months, a potential recession isn’t expected to be driven by the housing industry. That means we likely won’t experience a devastating housing crash like the country felt in 2008. Expert financial analyst Morgan Housel tweeted: “An interesting thing is a wide-spread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”
With prices appreciating and low-interest rates available, it’s a perfect time to buy or sell a home. Let’s get together to discuss how you can take the next step in the exciting journey of homeownership. Contact me to set up a meeting.
Susan Matthews is a Realtor serving greater Charleston, SC with Coldwell Banker / Global Luxury.