According to NAR, nationally house prices rose about $5,500; being up after 4 months of decline. NAR believes home prices will rise 9 percent in 2019. According to Zillow, the average home price as $218,000 in September 2018 which is predicted to rise in price by 6.4%. The average price of a rental is $1,442 per month. Despite lumber prices dropping, new housing construction has dropped by 12% in June 2018. Higher mortgage rates and economic uncertainty is partially to blame for the fall. With the upcoming election in 2020, it is predicted that a Trump defeat could send US stock markets and housing markets crashing. It is currently a seller’s market with home prices contentiously increasing and a persistent buyer demand.
With Millennials becoming of the age of home buying, the supply is becoming low and the prices are growing high. Also to blame for surging home prices, a strong economy, low unemployment, and high savings rate. The US housing market is stable and is backed by a strong economic forecast. The prices are predicted to rise in 2019 when trade issues with the EU and China are resolved. Half of all U.S. homes have regained their values since before the 2007 crash, while prices are predicted to rise another 5% by 2019.
In June 2018, there were 1.95 million existing homes for sale, up half a percent from the previous year. Unfortunately, sellers are demanding record prices while first time buyers can not afford them. The generated price rise is forecasted to be double of inflation and wage growth, sitting at over 5%. It is currently a great time to purchase a home; think about a rental income property for a sustained income. Overall, predictions and outlook for the US housing market are positive, as it is on its strongest roll.