Many buyers ask me about home prices, interest rates, and if now is a good time to buy.
Some are disappointed that they didn’t make a move 18 months ago and have decided to “wait and see” in hopes that prices and interest rates will actually go down.
The Forecast Data
The graphic shown above is very, very important for current and would-be homeowners, as well as those in the real-estate profession in general.
The graph above shows that home prices escalated 5.6% year-over-year – and that the CoreLogic forecast for 2019 is that housing will continue to appreciate at a 4.7% clip.
It’s really important to understand that home prices are in no way projected to go down. They are just increasing at a slower rate than over the last 2 years.
Many potential buyers are sitting on the fence, waiting to see if the market has “topped-out”, but as you can see, this is not the case.
You can find out more about why there is no bubble and why 2018 looks nothing like 2007 here…
The CoreLogic/Case-Shiller indexes help securities investors, mortgage banks, servicing operations, and government agencies make property valuations, assess and manage risk, mitigate losses, and control appraisal quality.
In essence, these guys are the best in the business in real-estate pricing data and forecasting. Interestingly, their forecasts have actually been quite conservative – they’ve been on the low side when predicting appreciation over the last few years.
Yes, forecasted growth will most likely slow some, but not by much…and remember, this shows that appreciation is increasing at a slower rate, not a loss in value.
Secondly, based on the latest economic data and comments from the Federal Reserve, there’s very good reason to believe that interest rates will continue their ascent. You can find out more about that here….
Now is not the time to sit on the sidelines if you are looking to purchase residential real estate. If you wait another 18 months, I’m sure you will be looking back wondering why you didn’t act in 2018.
If you would like to discuss this more in detail, please do reach out to me, as it would be my pleasure to help!