As the housing market continues to increase in price and decrease in demand, it is likely the housing market may keep going up. In this current age and environment, potential home buyers can fear to make a large purchase. Especially if their large purchase may affect their credit score. With scores at an all-time-high, buyers do not want to ruin their credit by buying a house that is either too expensive or won’t be worth much in the next few years.
This increase in prices can harm the housing market
A house is a large commitment and can be affected by the housing market continuously rising. While there has been a noticeable decline, it is too early in the year to tell whether it is temporary or something more serious. In the current forecast for 2019, economists and real estate experts predict that the housing market will slow down but not stop. Although some economists are arguing the opposite and predict that the market will rise, rather than slow down in their prices. This increase in prices can harm the housing market and any potential buyers ready to take the step.
The market will level out
Another prediction is that the housing market will stabilize. Rather than increasing or decreasing drastically, some economists predict that the market will level out. For example, “The forecast for home sales will be very boring — meaning stable,” stated Lawrence Yun, NAR chief economist. With no change coming from the buyers or the economy, the housing market should stay the same or only minimally increase.
Don’t expect a buyer’s market on the horizon within the next five years
Another large name from Realtor.com has given their predictions for the current housing market. “Inventory will continue to increase next year, but unless there is a major shift in the economic trajectory, we don’t expect a buyer’s market on the horizon within the next five years,” said Danielle Hale, chief economist for Realtor.com. Danielle Hale steers away from the prediction of the housing markets increasing due to economic turmoil.
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