Housing Market Slowdown
Roseville, CA- November was the 11th consecutive month of decreasing real estate contract signings which demonstrates to slowdown of our Sacramento housing market.
Increasing mortgage rates have reduced the number of eligible home buyers and for some first-time buyers reduced the amount they are qualified for to a level that they are priced out of the Sacramento area market.
According to National Association of Realtors, rates are likely going to increase even further. Today’s 30-year fixed rate is sitting at 4.75 percent. Paul Bishop, NAR’s vice president of research predicts the 30-year fixed interest mortgage rates to average around 5.3 percent in 2019.
Even with increasing rates the NAR remains positive about the long-term outlook for the housing market. According to their chief economist, “Mortgage rates are much lower today compared to earlier this century, when mortgage rates averaged 8 percent. There are more jobs today than there were two decades ago. So, while the long-term prospects look solid, we just have to get through this short-term period of uncertainty.”
Home buyers who haven’t been priced out of the market are starting to see more choices in inventories. Several markets are reporting year-over-year increases in active listings.