The United States stock market has showed some volatility in 2018 causing mortgage rates to slow. Freddie Mac just revealed that mortgage rates actually drop to 4.75%. So how does this affect the real estate market?
Every indication is that mortgage rate increases are going to slow through 2019. Making the present the best time to buy a house.
Both pending and home sales closed has slightly dropped in the past few months. The primary reason from polled buyer is that the increasing interest rates that were nearing 5% wasn't attractive to a home buyer. The regression to 4.75% should bring out a larger buyer pool to stimulate sales in the South Bay housing market.
Industry experts project that these lower and slowed rate hikes will create an attractive landscape for buyers. Especially at the start of the year in Q1, as a rate hike could be coming in Q2. If you are a home buyer you will want to purchase in the first 90 days.
Home sellers will want to price their homes properly as buyers have been moving inland from the coast because of their high asking prices. A well priced home will draw a lot of attention from buyers, multiple offers will start to drive the price back upwards on competitively priced homes.
We are expecting a huge buyer pool to start the year. They will be bound by the constraints of their loans in luxury markets potentially causing them to overlook overpriced homes. Sellers should price aggressively to drive the sales price upwards while negotiating, listing high and staying at a high listing price has caused several homes to sit on the market in 2018. We expect home values to steadily rise through out the course of the year.