Housing Market Trends to Keep an Eye On
February 25, 2019
Whether you’re planning to buy or sell a West Chester or Liberty Township home this year (or even in the coming years), it’s important to keep up with housing market trends. This way, you’ll be prepared to act in a way that helps you reap the greatest benefits.
We’ve looked at some housing market trends that began last year and some projections from industry experts for this year to help you make an informed decision and make your move at the right time.
Appreciation and Equity
When a property’s value rises since its purchase, it’s said to have appreciated. This helps homeowners build what is known as equity, or the amount of home you actually own. According to CoreLogic, a data and analytics company, properties that have a mortgage increased in equity about 12.3% from Q2 2017 to Q2 2018. In Ohio, the average homeowner has experienced a $11k increase in equity year-over-year!
So what does that mean for you? If you’re planning to list your West Chester or Liberty Township home for sale, and you have equity built up, you’ll likely have more money available to put down on a new Butler County, OH home.
Experts seem to think that interest rates will continue to rise this year. Freddie Mac has predicted rates will approach 5.5% as the year goes on, and it's possible that the Federal Reserve could continue to hike rates in 2019. Realtor.com® agrees that higher rates are coming.
While this sounds like a real negative, it’s important to remember that rates are still at historic lows. Plus, rising rates are a sign of a strong economy, which could indicate a rise in wages is on the horizon. Be that as it may, if you’re planning to buy a West Chester or Liberty Township home for sale in 2019, you may be better off acting sooner rather than later. When rates go up, you may see a reduction in your purchasing power.
In the Butler County region, it’s been a seller’s market for some time now. The number of available, desirable homes has been an issue for the last year, and as rates rise, that issue could worsen. Often when home shoppers see a trend of rising rates, they’ll rush to buy before rates can climb any higher, thus further reducing the number of available homes for sale.
According to Kiplinger®, Q4 2018 saw inventory near historic lows, and properties sold faster in September 2018 than they did the same time a year ago. This spurs home values and sales prices to climb, although the rise in rates may have acted to slow down the rise of home values somewhat.
For those selling their West Chester or Liberty Township home this has been a benefit, as they can sell their properties faster for higher prices, especially given the fierce competition among buyers.
But before homebuyers get discouraged, consider this good news: while inventory was extremely low in 2018, it has been slowly climbing in markets across the country. For instance, Realtor.com reported that new listings increased 4% in October 2018 from the year prior. For homebuyers, an increase in inventory should help slow price growth and hopefully put a new West Chester or Liberty Township home within reach.
Do you want to know more about the housing industry and track trends that may affect your ability to buy or sell this year? These publications — most of them online — will provide insight into the housing market and help you educate yourself on where it’s heading.
Realtor® Magazine — from the National Association of Realtors® (NAR)
Real Estate Magazine — strategy, business insights, industry info
Zillow Research — numbers, news, and stories
Curbed, NextDoor, and Patch — for local real estate news and trends
Interested in learning more about the local real estate market? Give us a call today! Our team would be happy to talk with you about hyper-local real estate trends and how these trends might affect your decision to buy or sell real estate this year.