Here’s what will most likely occur in the 2019 housing market.
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Though we’re currently in the midst of a great real estate market, experts are predicting a market correction and cooldown as 2019 unfolds. Here are the four signs pointing toward this shift:
1. Home sales are slowing. November 2017 saw the highest sales since December 2006, but that number has declined by 7% year over year. This report is called a lagging economic indicator, which indicates there will be a slowdown in the market.
2. Pending sales have decreased. This number has dropped by 6.7% year to year and is believed to have been caused by rising interest rates. When rates go up, buying power goes down, so some buyers are choosing not to buy at all.
Some buyers are choosing not to buy at all.
3. Stock market volatility. When the market’s on the brink of a shift, it creates uncertainty. While some people project a positive future, others are preparing for a decline. Either way, both sides agree that we’re definitely in for a market correction this year.
4. New construction will be coming soon. Competing with new construction will impact a seller’s price. Be aware of what’s on the market; buyers are comparing homes, and builders are trying to get projects underway before interest rates increase. Price your home aggressively and appropriately for a better outcome.
If you’re thinking about selling, get your home on the market right away before the bubble potentially bursts. We’d be more than happy to help you with your real estate needs, answer any questions, and provide you with further information. And if you don’t have the time to go through the traditional listing process but want to sell your home quickly, we can tell you about our guaranteed offer program. We look forward to hearing from you soon.