I’m joined today by Amber Kovarik with Guild Mortgage, who will be helping to share our predictions for the 2019 real estate and mortgage markets.
From an agent’s perspective, the 2018 real estate market is beginning to level off. After seeing several years of aggressive appreciation, interest rates are rising and buyers are becoming more cautious. Sellers aren’t able to chase the market as they were before; homes that are overpriced are being quickly rejected by the market.
Overall, our market is normal—we’re not in a crash or recession, though it does feel that way because Phoenix pricing has been artificially low, due to the mortgage fraud and subsequent crash of 2008. After experiencing such aggressive growth, it feels strange that we aren’t seeing the same numbers.
From the mortgage side of things, Amber says interest rates are a hot topic right now. Interest rates went up almost 1% in 2018, sitting at around 5%. As an example, this increase adds $160 a month to a $200,000 mortgage. People are already feeling the impact and there are more rate hikes on the horizon; the stronger our economy becomes, the higher interest rates will be. Our strongest housing markets have seen rates above 6%.
Buying now will save you money, compared to later when interest rates have risen. As we go into 2019, it’s important for both buyers and sellers to find a good agent to help navigate the market. There are things we can do to help you save money on your monthly payment, which is incredibly important because of looming rate hikes.
If you’re looking to buy or sell, have any questions, or would like some more information, feel free to reach out to us and schedule a consultation. We look forward to hearing from you.