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The 2 Most Important Things Every 2019 Buyer and Seller Needs To Know

Posted by American Realty & Assoc, Inc. on Wednesday, June 26th, 2019 at 1:04pm.

First things first: the housing market is still strong, according Daniel McCue, senior research associate at Harvard University's Joint Center for Housing Studies. But a housing shortage has led to big competition and higher prices, bringing down affordability, and generally putting a slowdown on the speed of the market. So If you’re planning to buy or sell this year, here are 2 the main takeaways:

1. Home Sales Are Slowing

The number of home sales has been steadily falling. It could be due to a small inventory, an increase in prices, and the intense home buying competition that goes along with that. The decline was most notable at the end of 2018, when the mortgage interest rates increased.

The amount of homes for sale is rising now, but sales are still slow because more of these homes are on the expensive side - where the demand is the weakest. The number of homes for sale under $200,000 has actually dropped.

For the average home seller, all of this means serious buyer competition if your home is priced well. Buyers, keep this in mind in your house hunt.

2. Home Price Growth Is Also Slowing

Buyers, don’t get excited too fast - home prices are not falling, they are just not increasing as quickly as they recently have. Home price increases were at 6.5% at the beginning of 2018, and dropped to 4.6% at the end of the year (according to the S&P/Case-Shiller National Home Price Index).

The likely cause is due to the major increase in home prices over the course of the past ten years. With prices hitting new highs in the last 5 years, the market could no longer sustain it. But while increase is slowing, there is no sign of a decrease yet.

Both buyers and sellers should keep this in mind during the home sale process when pricing a home or an offer. With a small inventory of lower-priced homes, there is not much wiggle room for buyers to secure their favorite home. Both parties need to take a more critical look at sold comparables.





Source: Realtor.com®

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