About a year ago, there were many estimations, according to the various experts in the housing market, about the somewhat tax law that slowed down the market as a whole. As it turns out due to these predictions, the housing market was beginning interests in mortgages and in the total tax-properties deductions. Yet despite these results, the market wasn’t really negatively affected. What does cause the negative impact is the more rising proportions of the market, where mortgages are raised, as well as the home prices in several areas, that truly become a danger to the market.
There are other more economic factors that affected the housing market as well as the government shutdown that occurred earlier this year. With uncertainty in both the opening of the government, global trade, and even the effects of the stock market, the housing market and the potential house buyers were both uncertain and unsuccessful in buying a larger home. The last time a government shutdown affected the housing market was back in 2013, where it harmed nothing more than house sales.
There is also a lack of sufficient time to tell if this drawback is something short or long term for the housing market. For much of the 2019 housing predictions, there is a possibility that it would slow down the market instead of a delay of sorts, especially in the prices and mortgage rates.
According to Doug C. Duncan at Fannie Mae, he claims that if mortgage rates start to head back to the original trial they were in, the house prices would stay at a more moderate level, improving the housing market in the next year.
National Association of Realtors
There is a good chance that the house sales are to be slightly stagnant and the house prices to be at an increase throughout the year, according to the National Association of Realtors.
NAR chief economist, Lawrence Yun, states that the housing market will be at a stable level for the most part, and that the sales are to possibly increase by 1% percent, being roughly 5.4 million homes, and a 3.1% increase in median home prices, averaging about 266.8K this year, to about 274K in the next year. Yun also says that the home prices will slow down, allowing prices to rise, and making inventory a prime concern for the market, thanks to the average population growth in the U.S.
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