Indicators Shifting to Favor Buyers
Roseville, CA- Real estate indicators are starting to shift in favor of home buyers as the housing market sets its sights on spring. Mortgages are getting cheaper, housing inventories are growing, and home prices are rising at a slower pace.
Mortgage rates have been holding steady for the last few weeks. The 30-year fixed-rate mortgage averaged 4.45 percent last week, according to Freddie Mac. Late last year, mortgage rates were nearing the 5 percent threshold, but several weeks of decreases is good news for home buyers.
Housing inventories are growing which gives buyers more choices. Increasing inventory is putting some pressure on home price growth as sellers now have more competition.
The decrease in mortgage rates and more buyers, home sales are projected to increase this year. Even with pressure on home prices, they will likely rise in 2019, but with one big difference. For the first time in years, income gains of a projected 3.5 percent will outpace home price growth of around 2 percent. That is good and a move toward better housing affordability.
For home sellers, lower prices may not sound ideal. But with interest rates down and slowing price, more prospective buyers should be encouraged to get off the sidelines, shop and make offers.
If you have any questions about this column or buying a home, please feel free to contact me at MagnumOne Realty office in Roseville (916-899-6571) . You can also reach me by emailing to firstname.lastname@example.org (DRE# 01418097)