Entrepreneur of the Week Post 4 - So how is the US real estate market for 2019 so far?
# Initiated weekPost 4
The first half of 2019 is already over, where is the time flying ??? So how is the US real estate market for a year so far?
At the beginning of the year, all eyes were on the real estate market as it began to show signs of softening for the first time in many years. A sharp rise in inventory, talk of rising interest rates and shrinking entrepreneurial earnings in the last quarter of 2018. All of this created a cloud of uncertainty.
Half a year later, you can declare that the sky has not fallen!
But the market could be more “hot” given that we are constantly announcing the news that unemployment rates across the country at an all-time low and interest rates remain in place (though many lenders have lowered prices).
“For the first time (at least from the end of 2014), we are starting to see prices in different states,” says Skyler Olsen - director of the Basil Economic Research Department (Skylar Olsen, Director of Economic Research at Zillow)
This means that prices are slowing down. For example, Seattle is the city with the highest rate of increase in the entire US over the past two years, an average of 13.8% in housing prices. The difference between April 2018 and April 2019 drastically, in April of this year the increase was ………… ..0%…
In San Francisco, another city that does not stop rising, the averages fell from 10.9% to 1.8%
Pay attention to the trend?
At the beginning of the year it seemed that the Federal Reserve was planning to raise interest rates but in March abandoned the idea and hinted that the rest of the year they would lower the interest rate (if that really happens we do not know yet) and as a result mortgage prices dropped from 5.09 to 4.09% Last year to June of this year.
But lowering interest rates is not an adrenaline rush to market. What is difficult to bring to the table today, just like the young people in Israel is the down payment (Down payment)
What is more, economic uncertainty for the coming years is felt for various reasons (such as the trade wars we discussed yesterday) and people avoid entering into a financial burden such as buying a home.
In general, the increase in stocks is felt in the more expensive markets, so the shortage of apartments is mainly in the medium and low-priced markets, in addition to the fact that entrepreneurs face construction costs (materials, salaries, more expensive land,
There is also a trend of baby boomers (born in the post-World War II years) who are aging, meaning they are less and less moving to smaller apartments, live longer (thank God) and function without long-term homes. If not this trend
So what is expected for us later this year?
Various analysts are rather optimistic. Olsen says even if the US economy weakens, the real estate market will continue to rise. There are many numbers of Millennials (born in the early XNUMXs to mid-XNUMXs) who have reached the age to start… ..look to buy an apartment…
After so long that the market is hot it's time to cool and calm down, here it's not Israel
Lawrence Yun, chief economist for the National Association of Realtors, says the best situation for everyone in the real estate market (both buyers and investors) is that house prices will stabilize and that there are multiple construction starts and then we can see a brighter future. To the US economy
The article was translated from Forbes Magazine from July 1
[#347907233ec5] ”Target =” _blank ”> https://www.forbes.com/sites/carolinefeeney/2019/07/01/halfway-into-2019-how-is-the-housing-market-holding-up#347907233ec5](#347907233ec5) ”Target =” _blank ”> https://www.forbes.com/sites/carolinefeeney/2019/07/01/halfway-into-2019-how-is-the-housing-market-holding-up#347907233ec5)
Halfway Into 2019, How Is The Housing Market Holding Up?
Here's how leading industry economists are piecing together the first stretch of 2019 and what they say is in store for the future of housing.
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