A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.
Taking everything into consideration, here are three important areas of the housing market that YOU need to know in order to make more informed buying or selling decisions: interest rates, building materials, and the economic outlook.
1. Interest Rates
The most important things to consider when buying a home is the interest % you will be charged to borrow the money. The question is, 'are low interest rates here to stay?' Freddie Mac, the authority on this matter, seems to indicate so! We are currently at a 21-month LOW in interest rates.
PRO TIP: If you are considering buying a home this year, Freddie Mac strongly recommends shopping around for quotes as getting a single additional mortgage rate quote can save the borrower an average of $1,500! Need help finding a mortgage specialist? Let us connect with one of our trusted advisors.
2. Building Materials
The National Association of Home Builders reports as much as $10 billion in goods imported from China are used in homebuilding. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% hike in the cost of building materials which will certainly hit the housing market.
3. Economic Slowdown
Many economic leaders have been debating on when to expect the next recession. Currently, three leading surveys indicate that it may begin in the next 18 months.
We are in a strong housing market. Wages are increasing, home prices are appreciating, and mortgage rates are the lowest they have been in 21 months. So, whether you are thinking of buying or selling real estate in 2019/2010, it’s a great time to be in the market.
These insights are brought to you by Keeping Current Matters.
TAYEB GROUP is a leading full-service real estate brokerage and your guide to the BEST real estate Queens, Nassau, & Suffolk.
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