For buyers and sellers, 2019 housing market is forecast to be ‘tough’
Next year is expected to be hard for buyers, particularly entry-level ones, and sellers, according to a forecast by Realtor.com.
WASHINGTON — Next year is expected to be a tough environment for both buyers, particularly for entry-level ones, and sellers, according to a forecast Realtor.com just released.
As mortgage rates creep up to hit 5.5 percent by the end of 2019, the average home purchase will be 8 percent more expensive per month than 2018, according to the report.
“We don’t expect a buyer’s market on the horizon within the next five years,’’ said Danielle Hale, chief economist for realtor.com.
A separate housing survey Fannie Mae released also concluded that only 1 in 5 Americans think it is a good time to buy a home.
Sellers will see increasing competition adding pressure on prices and may find it will take longer to sell in the coming year. After 44 months of declines, inventory picked up last month and is expected to continue to rise over the next year, according to Realtor.com. The increase however, will be in the mid- to higher-end tiers — Realtor.com is predicting double-digit gains in San Jose, Seattle, Boston, and Nashville in 2019 — not at the entry-level.
Among the 100 largest markets, only seven are forecast to see home prices decline. Urban Honolulu, a perennial pricey hub, will see zero change.
While no areas among the 50 largest metro areas are expected to see double-digit gains, 20 metro areas are projected to see home prices rise by 5 percent. With the exception of Jackson, Miss., these areas are all west of the Mississippi or in Florida.
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