The National Association of Realtors (NAR) recently released their real estate market predictions for 2019. Most notably, Consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace.
“Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines,” said Lawrence Yun, chief economist at the National Association of Realtors®. “2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we’ve been experiencing over the past few years.”
Looking to next year, Yun shared his forecast for home sales and median home prices. “The forecast for home sales will be very boring – meaning stable,” said Yun.
With a few months of data remaining in 2018, Yun estimates that existing-home sales will finish at a pace of 5.345 million—a decrease from 2017 (5.51 million). In 2019, sales are forecasted to increase to 5.4 million, a 1 percent increase.
The national median existing-home price is expected to rise to around $266,800 in 2019 (up 3.1 percent from 2018 this year and $274,000 in 2020. “Home price appreciation will slow down – the days of easy price gains are coming to an end – but prices will continue to rise.”
Commenting on the overall health of the U.S. economy, Yun noted that the economy is “good.” He noted that we have low unemployment, record high job openings, historically low jobless claims, job additions for eight straight years and wages beginning to increase. “This type of activity in the economy should support the housing market, even as interest rates rise,” said Yun.
To read the full and complete article, go to: the National Association of Realtors website or contact Shayla today!