Like any other industry, buyer demand largely drives the potential for the housing market. That said, projections for the six months or so about the 2019 housing market were bleak, and in some cases, alarming with hints at another potential housing crash. However, looking at a few recent reports and current home sales statistics, those concerns deemed to be unfounded. In fact, both reports show that buyer demand has increased leading into the spring sales season.
Two factors are at the base of this increase in buyer interest – falling home prices and mortgage rates. This combination means that less money is needed for home buyers to buy the home they seek.
- Decreasing Home Prices
According to reports, the median-price of a home with a 10% down-payment has decreased $6600, which offers families more buying power that this time last year. This shift puts more power into the buyer’s hands but it’s also good for home sellers to know. It’s even more important now to work with a local real estate and mortgage representative to get the skinny on the local real estate landscape when you are buying or selling a home.
- Falling Mortgage Rates
What goes up, must come down, and while we have seen long-term consistent increases in mortgage rates since the housing market has stabilized, rates have dropped over the last few months. There is always a natural ebb and flow to both housing prices and rates, and while experts will be watching the shifts as spring and summer progress, the view from here looks good from here, especially for home buyers.
The housing market is entering spring with a good prognosis – between housing prices and small decreases in rates, anyone looking to buy a home soon has a lot of good data on their side. The best way to get the most house for your money is to partner with a local real estate and mortgage professional. They know the landscape, the players in the space and the trends of the local neighborhoods, for buyers and sellers alike. Get the help you need to buy the home of your dreams today.