Real Estate Market Update January 2019
People are in an uproar that we are headed into a market that’s just like 2008, all over again. Hi, I’m Dave Bulava with The Dave Bulava Group. Well, let’s look at what the experts have to say. The Home Price Expectations Survey is made up of 105 real estate experts economists and market analysts. 104 of them, as well as, the chief economist at the Mortgage Bankers Association Fannie Mae, Freddie Mac, and the National Association of Realtors all say that we are going to see an increase in home prices through 2019. Take a look at this graph showing their projections. Notice, all of them are green. Green is good. They see a positive increase in housing prices. Do you remember when the market crashed in 2008? There was only one person that called out the crash and predicted it was going to happen before it did. That person was Robert Schiller. He’s a Nobel Prize winner and co-founder of The Case Schiller Index. He states: “You can call it a bubble, but it’s not the same. It’s more placid. I don’t expect a sharp turn in the housing market at this point.” So, what does this mean and how does that affect you? For buyers who are waiting the market to crash, probably have to re-evaluate your strategy. The true experts are expecting increases through 2020 with an average of a 5.4% positive increase to a 2.9% increase through 2022. Now, here’s something to be concerned about for both buyers and sellers. Freddie Mac is predicting that interest rates will increase up to 5.3% by the end of the fourth quarter of this year. You’ve got to act now. And here’s why. Sellers, as the interest rates increase the numbers of buyers who can qualify for your home decreases. And buyers, as interest rates increase your buying power goes down. And you can afford less. So, quit listening to what they say and listen to what the true experts say. And in always, feel free to reach out to me and my team for any information both real estate and community related. We’re here to help you. And please, forward this to anyone who you think it may help. Thanks a lot and have a great day.
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