“The only thing constant in life is Change”― Heraclitus
What better way to kick off the new year than with a quote about change! It's time to say Adios to 2018 as we jump into 2019 with new goals and a new drive to make this year better than the last. Here's a recap of 2018 with some helpful information to prepare you for the upcoming changes in 2019!!
Home Prices Increased by 5.1% Year over Year
Recent data showed a steady home price growth with homeowners perception of home value continuing to rise, however we may be entering a buyers' market in 2019. I'll dig into this a little more with the last section, but the increase in mortgage interest rates has reduced buyer demand and slowed the home price growth that we've been experiencing these last few years. In many cities, home sellers are responding to this demand by lowering their asking price in a leveling out approach. Economic conditions surrounding the country also impact home prices and we will keep a close eye to inform our peeps of what's to come!
Housing Inventory Tumbles?
The catchy headlines sure do put people in a scare!! Although not the best news, housing inventory is lower which means the number of homes for sale nationwide is lower across all price categories. One of the causes for this stems from the housing affordability for first time buyers. What some refer to as "starter homes" continue to be out of reach for many families and they continue to rent or focus on saving. A typical starter-home in San Francisco is close to $900,000 whereas Los Angeles is just below $400,000. Don't pack up and join my brother is So Cal just yet, we always have options for you :)
Mortgage Rates are Lower (kinda)
Not to get your hopes up just yet but interest rates are closer to what they were in the summer months of 2018 but still higher than this time last year. Currently, 30-year fixed-rate mortgages are averaging 4.55% when they were at 3.99% to end 2017. Even with the news headlines about financial markets, the overall economy continues to be healthy so the interest rates we are seeing today stem from the slide in home sales that occurred during the second half of 2018.