The Real Estate Slump Is Over. Better Times Are Ahead for Home Buyers

Mar 22

The Real Estate Slump Is Over. Better Times Are Ahead for Home Buyers

Murrman's Stuff, Reynolds Realty Group News

A Forbes.com Article Dated Mar 14, 2019 Says: (The Murrman’s Take Below)

IN LATE 2018-JAN 2019: Home sales plunged and time to sell rose
AND: Days to sell rose significantly
AND: “Sales got whacked by 15% in the West region, where home prices rose too fast too soon and made it too difficult for a middle-income household to buy.”

HOWEVER…RECENTLY: Showings have been trending up
AND: There are more mortgage applications
AND: The number of contract signings to buy is up in January
AND: “The broader consumer outlook about the economy is back to near an all-time high after a brief slump. The consumer confidence index reached 131 in February, slightly better than the figure one year ago and well above the 50-year average of 93”

AND: “The Fed to be “Patient” – No foreseen interest rate hikes in 2019
AND: “Mortgage Rates are back down to under 4.5% on a 30-year fixed rate mortgage”
AND: “The latest wage gain is the highest in a decade.”
AND: “For the first time in a long time, people’s income will outpace home price growth, thereby helping on affordability.”

The Murrman’s Take
My single biggest take-away is that: A wage gain that “is the highest in a decade.” and: “Incomes outpacing home price growth” MEANS that folks can now afford more (especially with near record low interest rates), AND that’s a good thing for both BUYERS AND SELLERS so…
VOILA! It’s a GREAT time to BUY or SELL!