For those planning to put a home on the market, sooner is better for the 2019-2020 selling season. Changing real estate trends point to sales slowing down. What has the market putting on the brakes?
Factors Playing into Slowing September Home Sales
– Current Real Estate Trends
Current patterns suggest an upswing in sales or pricing is unlikely in the near future. Though cities differ, prices in metro areas are roughly 45% more than they were pre-bubble in 2006-07.
However, home inventory is creeping up, putting pressure on pricing. This correlates with rent. As rents soften, buyers look to similar discounts when buying a home. This typically trickles-down from the most expensive markets. Those with a large supply of condos will be especially hard hit.
– Economist & Expert Opinion
Economists and real estate experts polled by Zillow in May expect a recession, though they differ on timing. Twenty-four-percent expect one in 2019; nearly half in 2020; with 14% expecting the recession to hold off until 2021.
– Stock Market Fallout
Slowing global growth, trade wars, and their effect on the stock market and bond yield growth are making buyers everywhere more cautious about investing in a home.
– Uncertain Mortgage Rates
Last year, the Fed indicated price hikes on the horizon. However, this year, due to trade tensions and a softening economy, the tables have turned. People already feel the high price of housing, and with an uncertain economy, are pulling back.
– Tax Reform Consequences
Buyers are taking note of property tax and mortgage interest deductions that have dried up, putting the brakes on new purchases until they see how their 2019 tax returns are affected.
Changing real estate trends have you worried? Stay on top of market shifts with the help of Properties Online today.