Are you tired of your landlord or your old hose? Well, now it’s the time to ditch your landlord and make new housing resolution’s.
Finding and buying a new house is not as easy as watching Mellissa McCarthy dancing. It is more like trying to stop Thanos from erasing half of the world’s population. In short, it is a minefield filled with “I didn’t know this and that’s”. When choosing the right mortgage, you want to reduce the things you don’t know.
So, let’s look at some of the puzzles you need to watch carefully this 2019.
In order for prices to increase with inflation, a normal inventory is required to have a 6-months’ supply of home for sale. This year inventory listing is at a 3.9-month, as a result, it has put upward pressure on home prices.
From July 2015 to May 2108, we have observed a steady decline and drops in the inventory of homes for sale in the real estate market. But, over the last few months, there has been a shift in the inventory.
According to a report by Redfin, the active listing has grown by 6.4% between March and April. The same transition has witnessed in May with an addition of a 4.2% increase in available inventory supplies.
Thus, if we continue to observe an increase in homes for sale. Then we should consider moving further away from a seller’s market and closer to a normal market
Interest rates not only impact your monthly housing cost but also your purchasing power. Purchasing power in this context, it’s the amount of home you can buy with the budget you have set aside to spend.mIncrease in rates will lead to a decrease in the price of the house you plan to buy with your specified budget.
Mortgage interest rates had been on the increase much of 2018, but this year we have seen a slight decline. The average 30-year fixed mortgage rate climbed to 4.94% in November before falling to 4.62% last week. Freddie Mac predicted an increase in mortgage rates to 5% for 2019, but recently the group just cut that prediction to 4.3%.
So, if you have been looking for a good rate on a refinance or home purchase? Now might be the perfect time to lock.
More homes for sale
The real estate sector has been a seller’s market, for so long, hence there are more buyers than houses for sale. This shifts the balance of negotiating power in the seller’s direction rather than the buyer.
Although we said maybe 2019 might become a normal market, we are not there yet. It still remains a seller’s market. It’s true! A seller’s market isn’t ideal for buyers, but there is still some hope. It has been forecasted that the numbers of homes for sales are expected to rise.
The only problem is that demand for houses will continue to exceed supply, even with the availability of more houses for sale.
It was estimated that 370,000 fewer houses were built in 2017 than were needed to satisfy the demand result in population growth. According to Freddie Mac, until the construction of houses is increased. Housing costs will likely to continue rising above income. Resulting in constricting household formation. Also preventing house ownership for millions of potential households.
So, if you are planning to enter the housing market either as a buyer or a seller. You first need to get all the facts right. Weigh your options and make the right choice.