There are some shifting trends and research showing some valuable information for those thinking about buying and selling this year. Here are three things to keep on your radar if you are thinking about moving this year!
1 – Home prices are appreciating at a more normal rate. Home prices have been improving for about 10 years now. Most experts are forecasting continued growth through next year. But it should be leveling off to a more normal appreciation as we move into 2020. Normal would be about 3.6%.
2- Interest rates are low. Over the past 30 years, the average mortgage rate was about 8.27% in the United States. In the 1980’s rates peaked as high as 18%!! Today, the average rate is about 3.81% (according to Freddie Mac) which is much lower than the 30 year average. Experts predict it will climb back into the low 4% range in the near future, but that is still much lower than the 30 year average. Rates do vary based on the type of loan, your credit score and what type of loan you are doing. Even if the rates do climb back to the 4-4.5% range, you are still getting a great deal on a mortgage rate.
3 – An possible recession doesn’t mean there will be a housing crash. There are experts predicting a recession in the next 18 months. However if there is a recession, that isn’t expected to be driven by the housing industry. More than likely we will not experience a housing crash like we did in 2008. According to the Corelogic Housing Index, in the last five recessions, housing prices actually improved in 3 of the five recessions. 2008 was the worst hit, but in 1991, the hit was only 1.9%. So a recession may not affect housing like it did in 2008.
What does all this mean for you? Home prices are still improving and interest rates are low. That means it could be a great time to buy a new home! If you are thinking about buying, let me know – I can help you figure out the best way for you to move forward and get a new home!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
