Shifting trends are pointing toward some valuable projections about the status of the housing market.
Top three things to put on your radar as we head into the coming months:
Home prices are appreciating at a more normal rate: Home prices have been appreciating for about ten years now. Experts are forecasting continued growth throughout the next year, resulting in leveled-off to normal appreciation (3.6%) as we move into 2020.
Low Interest Rates: Over the past 30 years, the average mortgage rate in the United States has been 8.27%. The rate is considerably lower than the historical 30-year average. Although experts predict it may climb into the low 4% range in the near future, that’s still remarkably lower than our running average. A great time to get more for your money over the life of your loan.
An impending recession does not mean there will be a housing crash. Expert research claims there will be a recession within the next 18 months, not expected to be driven by the housing industry. That means we likely won’t experience a devastating housing crash like the country felt in 2008.
Expert financial analyst Morgan Housel tweeted:
“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”
In fact, during 3 of the 5 last U.S. recessions, housing prices actually appreciated.
With prices appreciating and low interest rates available, it’s a perfect time to buy or sell a home. Call Freedom First Properties at (714) 949-9669 to take the next step in the exciting journey of home ownership.