So far the 2019 Real Estate Market has shown signs of growth, more homes for sale and mortgage rates that keep getting lower. This is the exact opposite of what experts have been saying and the good old media who just loves turmoil. The market has seen more sales and homes being listed. Buyers are still fighting each other over the good homes available. Interest rates have dropped significantly since the beginning of 2019 and most buyers are getting quoted 3.5% and lower right now on a 30 year fixed mortgage. Also, with the lower interest rate it is allowing buyers to either buy more, or buy at a much cheaper monthly payment. For example a $800,000 house with 20% down ($160,000) is a $640,000 mortgage which 3 months ago was at 4.25% is $3,148.42, and now at today's rate of 3.5% your monthly will be $2,873.89 which is huge savings monthly.
In other ways the experts were correct about buyers still competing against each other for homes. There are more homes for sale, and most selling within a week or two which is allowing pricing to still climb. The rest of this year will be one to watch. If rates continue dropping to 3% or even lower, we could have a surge of sales during the 4th quarter raising values even faster. If you are shopping for a home and thinking that the market is going to crash soon it doesn't look that way. This is a good indicator that we will be seeing more sales and inventory dropping once again. Federal Reserve Chairman Powell even stated today that the central bank will cut interest rates again as soon as next month.
What does this mean to you? Banks can trade money at a cheaper price and the savings are passed onto the consumer. The fed is trying to stimulate the economy while the Trade war with China continues. This will be an interesting time to watch how the global economy is going to affect our local real estate markets.