What will the housing market do in 2019?
Well….it depends on many factors…..
December was a bumpy stock market ride.Unfortunately there is much volatility in the markets these days that come from worry about China trade talks, concern about the overall strength of the Chinese economy and how a slow down could impact the US economy (See Tim Cook’s bombshell earnings announcement on January 3rd and the news that Apple-will be cutting Iphone production by 10%). etc etc
The volatility may erode confidence and some may decide to hold off on real estate decisions if their portfolios are suffering losses.
Foreclosures and Delinquencies are at their lowest level in four years.Good for the market and overall confidence.
Affordability hits lowest level in ten years.This will help keep prices level as buyers may not be able to stretch as much as in the last few years.
Interest rates are up with two more hikes anticipated in 2019.Higher rates will impact buyer affordability, so this could be a huge negative.
Federal Government Shutdown.Not anticipated to have a significant impact, at this point, but it could affect overall sentiment and have buyers and sellers stay put.
Overall, prices are expected to remain steady, but, as always, every market is different and it’s all going to depend on the factors above and demand. Let’s talk about demand for a minute……it’s interesting to consider that more and more buyers no longer feel that they have to rush their decision to purchase and feel more emboldened to offer a lower price. This strategy is risky for several reasons. The main reason is that if you are in multiple offers, your offer may not be competitive. The second reason is that if interest rates continue to rise, your buying power will erode over time.
Request a complimentary Comparative Market Analysis today or schedule a visit from myself. I’m here to help maximize the value of your property and help decide when might be the best to time sell…for you and your family and your wallet.
Call me if you would like home selling strategies that net top dollar!
Here are some local number’s; home prices for October 2018- December 2018
vs. same period last year:
|Toluca Lake||– 6.9%|
|Studio City||+ 23.9%|
|Hollywood Hills||+ 6.4%|
|Valley Village||– 15.0%|
|Sherman Oaks||– 3.2%|
Weekly mortgage rates:
30 yr. fixed rate 4.51 0.11
15 yr. fixed rate 3.99 0.08
5 yr. adjustable rate 3.98 0.00
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