A Buyer’s Market may be coming soon to your neighborhood. According to CoreLogic, home values moved 5.1 percent higher this past November 2018 compared to November 2017. But, appreciation growth is predicted at 4.8 percent gain in home values by November 2019, which is a slow down. Some of the issues shaping a Buyer’s Market:
More Inventory: NAR (The National Association of REALTORS®) recently reported an uptick in properties for sale, as more homeowners put their homes up for sale. This of course, gives buyers more choice in picking a house, which induces some sellers to lower their asking prices due to the added competition and choices.
Asking Price Reductions: of the current 350 single family, condominium and townhouse “Active” listings in San Mateo County, 101 have had asking or list prices reduced. This may be due to various factors, including the need to sell.
Some Drawbacks: Rising Mortgage Rates. According to Frank Nothaft, CoreLogic’s chief economist, rising mortgage rates have slowed buyer demand. “Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during November, the highest monthly average since February 2011. These higher rates and home prices have reduced buyer affordability.” However, there are certain banks that are offering lower rates as 4.9 percent is an average. Contact me for more information on getting a lower interest rate for your home purchase.
Why Buy Now?: According to Lawrence Yun, NAR’s chief economist, “Given the 17 million more jobs now compared to the turn of the century, home sales are clearly under performing today,. That also means there is a steady longer-term growth potential.” The strong economy may get more buyers purchasing in 2019.
So What? 2019 points to a buyer’s market, but living in the SF Bay Areas certainly has its unique real estate peculiarities, especially compared to the rest of California, not to mention the rest of the US. Are you ready to purchase in 2019? Give me a call to show you why now or in the near future is an excellent time to buy. Reasons? The economy is strong, no more land being made on the SF Peninsula, mortgage rates still historically low and an excellent place to call home: great weather, excellent schools, a major technology hub, a world wide destination, and many things to do!
