By Zona Horton, P.A., CRS, GRI Realtor
According to KCM Blog, Steve Harney, Real Estate Prognosticator: “We’re halfway through the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the experts predict for the second half of 2019.”
Danielle Hale, Chief Economist at Realtor.com, stated:
“Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year,” said Danielle Hale, realtor.com® ‘s chief economist. “However, the boost in affordability has yet to translate into more home sales perhaps because–while the shift in trend is welcome, the current monthly savings are small and some buyers may be waiting for markets to tip further in their favor.”
Lawrence Yun, NAR chief economist, stated:
“Lower-than-usual mortgage rates have led to the increase in pending sales for May. “Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”
Yun said consumer confidence about home buying has risen, and he expects more activity in the coming months. “The Federal Reserve may cut interest rates one more time this year, but there is no guarantee mortgage rates will fall from these already historically low points,” he said. “Job creation and a rise in inventory will nonetheless drive more buyers to enter the market.”
Doug Duncan, Chief Economist for Fannie Mae, said:
“Despite a strong start to the year, we expect growth to slow beginning in the second quarter as macro-level uncertainty disincentivizes business fixed investment and starts to weigh on consumer spending. In order to sustain the longest expansion in more than 70 years, we expect the Fed to once again begin easing monetary policy and to cut its interest rate target by 25 basis points in September.”
“We expect housing to add to growth for the foreseeable future, and our projection of a 1.0 percent year-over-year increase in home sales in 2019 remains unchanged,” Duncan continued. “Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market.”
Kaycee Miller, of Realtor Magazine, stated:
At the moment, some observers suggest the housing market is indeed headed for a slowdown. But no need to panic — experts say the financial and economic factors that were in play during the big crash a decade ago don’t exist today. This year’s forecast can be attributed to the natural ebb and flow of the market.
What Does All This Mean?
The housing market will be stronger for the rest of 2019. If you’d like to know more about your specific market, let’s get together to chat about what’s happening in our area. I would be more than happy to send you the latest statistics regarding any area or neighborhood of your interest!
- Zona Horton has been successfully selling Real Estate in South Florida for over 30 years. She works for the international Keller Williams family of companies and serves Davie, Cooper City and surrounding cities. Call her for all your Real Estate needs. For information, visit www.ZonaHorton.com or send an email to [email protected].