The beginning of 2019 brought with it high mortgage rates, a decrease in home sales, a small increase in inventory, and a higher DOM across the nation. Experts weighed in at the time with differing opinions: some said things were looking up for the US housing market while others said it might be time to start worrying. So how have those predictions played out? What’s in store for the spring real estate market 2019?
The Spring Real Estate Market 2019 Trends
Springtime is synonymous with a hot real estate market where homebuyers and real estate investors hit the market looking to buy property. In 2019, trends point to the fact that this year will be no different despite the concern in the earlier months. Even though the signs of the state of the US housing market appeared to be negative in January 2019, Chief Economist at the National Association of Realtors, Lawrence Yun, said:
Multiple data show definitively improving conditions.
One important trend bringing about this positive outlook for the spring real estate market is the rise in wages. Wages are up an average of 3.4% year over year. This is actually the highest increase in the average wage growth rate in 10 years. The result? Property buyers are looking forward to buying real estate in 2019 (as reported by NAR consumer sentiment surveys).
And while it’s true high mortgage rates were the topic of discussion at the beginning of the year, the spring real estate market is welcoming a lower rate of 4.31%. To put that into perspective, the same time last year, the average 30-year fixed-rate mortgage was at 4.44%. The rate is actually the lowest it has been since February 2018.
As a result of the increasing consumer confidence and the drop in mortgage rates, more homebuyers are applying for a mortgage to buy a home in the spring real estate market.
What You Need to Know as an Investor Entering the Market
If you plan on selling your investment property, take advantage of these trends in the upcoming market. Spring is well known as the best time to list an investment property for sale and 2019 is forecast to be a great year for property sellers.
But what if you want to buy an investment property in this season? Even though sellers might raise prices and you’ll find competition from homebuyers, there are still plenty of advantages to buying real estate during the spring. Learn more about them by reading: Why Spring Is the Best Time of Year to Buy a House for Investment.
Don’t forget to enter the spring real estate market 2019 armed with the best investment tools here on Mashvisor.
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