There has a been a lot of talk about the market and what will happen this year. If you search online you can find articles that are calling for the next real estate market crash and beside it articles that are showing that we continue to grow. So what will 2019 bring us?
The first thing is home prices are not on the verge of depreciation. 105 economists and real estate experts were surveyed and asked if the market will appreciate or depreciate. Out of this 105 people, 104 predicted it will appreciate and only one is predicting a decline. In fact, the National Association of Realtors is predicting a 2.5% increase this year nationally. This is much lower than Freddie Mac and some others who predict it will increase 3.9% in 2019. To make this even better Corelogic, a real estate research company, predicts Massachusetts will appreciate 6.1% in 2019, one of the highest in the United States! If you want to see your area you can check out the market check out our market reports at JasonRHomes Market Reports
Now let's take a quick look at mortgage rates as this is another thing on the mind of the market. We have been spoiled in the past few years with mortgage rates in the 3% to mid 4.5% range. The market continues to change, but according to Freddie Mac the the rates should be close to as follows: quarter 1 and 2 will stay around 5% and it will continue to rise through the year to 5.3%. You may be saying this will make the mortgage payments too high. Let's take a look at some historical numbers. Assuming the person put 20% down and had a 30-year mortgage at the Freddie Mac average monthly rate the typical mortgage payment in the country would be $1,000 next year as compared to $922 in 2018. If we look back at 2006 the average mortgage payment was $1,259 a month.
What does this all mean in the market next year? We will see a change in the mindset of the market where houses are no longer getting multiple offers the day it was listed just by pricing it right. Buyers will continue to buy the homes on the market, but will become a little more picky about the home they buy. Our homes will still appreciate in value, especially in MA. Don't be scared about buying and selling this year. As always if you have any questions or need any help I am always here, just reach out to the JasonRHomes team through JasonRHomes.com or email me at Jason@JasonRHomes.com.