What will drive the real estate market in 2019, and in what direction are we going?
To gain some perspective, let’s look at long-term growth. Between 2012 and 2017, home prices in New Hampshire appreciated by at least 26%. In 2017, home price appreciation was driven yet higher still, with the highest number of home sales in ten years. Sales in 2018 were down by just 1.5%.
In 2019, industry forecasters are predicting a 1% increase in sales, and a 3.1% increase in existing-home price appreciation. These numbers suggest that although home appreciation is slowing down and sales are stabilizing, prices are likely to continue to rise. This overall picture of stabilization, coupled with mortgage interest rates hovering at 5%, should play well with housing affordability, so why are buyers staying out of the market?
The shortage of homes, especially at this time of year, no doubt accounts for part of the reason, but I’m convinced that a large percentage of potential buyers still see homeownership as beyond their reach. Perceived problems with affordability on the part of some prevent them from pursuing a path toward prosperity. There is in fact a significantly greater opportunity for economic self-sufficiency in owning a home. With this in mind, let me say to those still on the fence, there is no bank like home! Let’s put a plan in place to make your dream of homeownership a reality.