If you keep yourself up to date on the real estate market, you wouldn’t be surprised to know that the growing housing sector is projected to have a slow period. From individual financial experts to real estate companies, the dip in the housing market is noted through various sources.
The actual manifestation of these projections is now coming to the forefront, with Realtor.com noting that home price growth has continued to slow through June 2019. Citing research from the S&P CoreLogic Case-Shiller National Home Price Index, the real estate platform mentioned that national home prices grew by only 3.1 percent, which is down from the 3.3 percent annual pace recorded in the previous month.
While the difference seems marginal in comparison, it alludes to a set pattern of slowed growth, which is gradually leading the housing market towards an unpredictable future.
This is The Longest Period of Slowed Growth
That mentioned time frame seems to have taken over the market quite significantly. Even the dropped mortgage rates are not able to encourage an upward trend. This is the most prolonged slowed-growth period since the Great Recession in 2007.
To be specific, this phase of slowed growth stretches over a whopping 15 months. While it has been going on for a while, the effects are coming at a surprising rate. The second quarter’s overall housing prices rose by 5 percent in 2019, while the same period was recorded to have a 7 percent growth in 2018.
These statistics from the Federal Housing Finance Agency House Price Index mark a 2 percent slowdown in just one year, which indicates that the housing market isn’t driving down a path of unaccessible prices.
According to CNBC, while the current slowed-growth period is seen as an advantage for buyers, it could slowly turn around to affect them as well. The slowed-growth might lead to supply changes, leaving the housing market with fewer listings for buyers to choose, making this exact moment a great opportunity to start buying homes.
Statistics show that the number of sale-listings has already started to decrease noticeably. From 6.4 percent growth in January to 5.8 percent growth in February, the supply in the housing market has been reducing since the start of this year. Danielle Hale, the chief economist at Realtor.com mentioned that the affected growth in housing listings is due to a number of factors, such as “rate-lock, recently decreased consumer confidence and older generations choosing to age in place.”
Talking About Growth
It is not just inventory numbers that will go through the slowed-growth phenomenon. If the pricing growth keeps being affected, then it might provide a cause for housing prices to go down for the first time in years. While some experts are hopeful that the current trend wouldn’t lead to a market crash, others are warning consumers of a possible recession in late 2019 or early 2020.
As such, it is more important than ever that homebuyers and sellers look through their assets thoroughly before making any financial decisions, especially those which could have significant effects on their future. Are you trying to buy a home, despite all these uncertainties? At AFTHA we can help with that, let us carry the load. Call now to (833) 295-6128, or write us an email to firstname.lastname@example.org. Our group of experts are ready to dive in.