The housing market has been experiencing drops in sales for the past three years already, slowly sinking into what appears to be a bubble waiting to burst.
Slow home price appreciation active for quite some time now, combined with lower mortgage rates are surely bringing the housing market out of the overheating market, while housing sales fell by 1,2%, touching the lowest performance in the last three years.
While this case could represent a marvelous opportunity for home buyers in the upcoming spring, analysts and real estate agents are convinced that few house listings and the rising rates for buying homes is killing the business.
Will the Housing Market Crash in the Upcoming Period of 2019 and 2020?
Due to the fact that mortgage rates dropped, it was expected to see a rise in the sales of real estate in January 2019, however, this was not the case.
Average prices for real estate have on the other hand increased in oppose to the prices active during the last year, while the chief economist at NAR, Lawrence Yun, insists that the sales of real estate recorded in January were some of the lowest when compared to the history of housing sales growth.
However, despite the turmoil that real estate agents are facing within the dropping sales, Yun is predicting that the sales should soon come out of its cyclical lows with moderating house prices, which should increase the affordability of real estate that way also boosting the sales in the upcoming period.
Yun is predicting that more buyers should be attracted to the market in the following months.
One of the biggest obstacles for achieving this case scenario lies in the fact that the number of homes that could be categorized as affordable is not rising fast enough, however, many analysts believe that the decreased mortgage rates will bring more buyers to the market combined with lower prices for real estate.