As a new year approaches, we’re getting more and more questions about whether we’ll be seeing a market crash, going into a recession, or moving into a buyer’s market in 2019. Today we’ll be giving you our predictions, as well as a recap of what we saw in our market throughout 2018. Let’s begin with where we are now.
If you were a homeowner at the end of last year, your home has likely appreciated by about 6.6% from then to now. The number of homes sold has also increased 3.6% year to year. Both of these are fantastic pieces news!
Compared to this time last year, however, there are 10.5% more homes on the market and 6.3% fewer pending sales. These are two big indicators that 2019 will see a little bit of a market shift. Homes worth less than $250,000 will be in a seller’s market, but homes between $250,000 and $300,000 will be transitioning toward a buyer’s market. Homes above $300,000 will stay in a buyer’s market. The market you’re in depends on what your home or the home you’re interested in is worth.
Our overall market is still very strong with 3.4 months of inventory currently. We don’t anticipate seeing a market crash like we did 10 years ago, but we do believe the rate of appreciation will slow down. We saw 6.6% appreciation this year, but this time next year may show around 3%.
Interest rates increased in 2018 and they’ll likely continue to do so next year. The increases we’ve seen already are part of the reason there are more homes on the market and fewer properties going under contract.
If you’re looking to buy or sell a home soon, reach out to us. We can do a one-on-one consultation to give you sound advice on what’ll work best in your situation. It’s the best way we can determine whether now or later is the best time for you to jump into the market. If you have any other questions or need more information, we’re always here to help you. We look forward to hearing from you soon!