What’s Ahead in the U.S. Housing Market and What is the Impact on Relocation?
Posted by Meighan Dutt, Senior Client Account Manager, Guaranteed Rate Affinity.
The following information is provided courtesy of our partners at Guaranteed Rate Affinity, with information from the National Association of Realtors®.
In a nutshell, the remainder of 2019 seems to be more of the same! According to realtor.com, the market will be very similar to 2018 with little improvement. Below are some of the highlights:
- Inventory will improve slightly but not enough to meet demand. In April, 2019 inventory was up 4.4% over April 2018. Supply of inventory is at only 3.9 months; a healthy real estate market typically has between five and six months of inventory.
- Millennials will purchase more homes than other groups, as 45% of all mortgages will go to this demographic, followed by 37% GenX’ers, and 17% Baby Boomers.
- Home price appreciation will move at a slower pace than the last several years. Recent estimates put the expectation at 2.9%.
- Mortgage rates had been expected to hit 5%, but have now been forecasted to go lower. The average 30-year fixed rate in April was 4.1%.
- Somewhere between 5.4 and 5.5 million homes will exchange hands (2018 came in at approximately 5.3 million homes sold).
- The number of foreclosures and mortgage delinquencies will continue to trend very low and stay below norms.
- There is the possibility for some price corrections in overheated markets.
What Does This Mean for Relocating Buyers and Sellers?
Here are a few tips for relocating buyers and sellers, to make their home buying and selling decision easier:
- It’s a good time to borrow. With interest rates low, and forecast to go lower for the rest of 2019, now is a good time to borrow for relocating employees.
- Be prepared to act fast. Inventory is still low, with supply not meeting demand. Relocating employees should be prepared to move fast if they find a home they like, and be ready with a mortgage approval.
- Know how much you can afford. It’s important for transferring employees to know how much home they can afford in their destination. Do they need to sell first? Encourage your relocating employees to speak to a relocation mortgage professional early in the process.
- Know your area. Use your Cartus preferred broker, as well as real estate websites, to gauge the current inventory and median existing-home price in the neighborhoods on your home buying and selling radar.
Contact your Cartus representative or Guaranteed Rate Affinity account manager if you have questions.
Disclaimer: All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate Affinity, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate Affinity, LLC. Guaranteed Rate Affinity, LLC its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
Sample ‘future’ rate provided for illustration purposes only and is not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard.
Guaranteed Rate Affinity, LLC. cannot predict where rates will be in the future.