Monday Market Update - Spring Market

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We’ve historically had a market that reacted well to spring, and trended upwards beginning in March of every year.  That has continued to be the case in 2019, and the fact that the market has been so high performing over the past few years is cause for excitement.  The market continues to perform well, and both buyers and sellers can feel comfortable with what we are currently experiencing. Even though a slowing of home prices is predicted, with an increase in interest rates predicted, buyers can still save money by purchasing now rather than waiting.  And based on what we are seeing in the market, they are! The absorption rate of single family properties continues to decline, new listing volume is again starting to increase, and sold volume is trending upward as well. The small decline monthly in absorption has lead us from 5.42 months in March of 2018 to 4.94 this year, meaning the market is ready to handle new listings.  So what’s keeping you from making a move!

39564 Jackson County USA

Median Estimated Home Value $166K $157K $242K

Estimated Home Value 12-Month Change +4.2% +4.5% +5.9%

Median List Price $205K $160K $105K

List Price 1-Month Change -4% - +5%

List Price 12-Month Change +5.4%   +6.7% +8.1%

Median Home Age 31 37 40

Own 72% 70% 64%

Rent 28% 30% 36%

A few bullet points that emphasize where we are and where we are going:

Mortgage interest rates are on the rise after years of being at a standstill. Interest rates are projected to increase to an average of 5% for a 30-year mortgage and 4.4% for a 15-year mortgage.

With most housing markets at low risk for a downturn, the 2018 Housing and Mortgage Market Review estimates home prices will continue to rise for the next couple of years, with annual increases of 2–6%.(7) Who-hoo for sellers! If you sell your house before 2020, you’ll likely still make a great profit.

With such fast-rising mortgage interest rates, some folks are wondering if the housing market could collapse again. Well, it’s impossible to know for sure, but a number of factors indicate a housing crash is not in the foreseeable future and the economy is still strong. Here are some indicators:

  • People are spending money.

  • There’s a low unemployment rate and new career opportunities.

  • All-cash real estate buyers (our kind of people!) are becoming more common.

  • Fewer buyers are using interest-only home loans (aka the worst loans possible) that allow you to pay just the interest each month and not the principal.

  • Millennials want to buy.

  • Taxes are lower.