Devon Thornsby writes about and reports on Real Estate for US News&World Report. At the beginning of 2018 she somewhat predicted a slower second half when she elaborated on a survey that “…Just 25 percent of respondents believe 2018 will be a better time to buy a home than 2017…High rents hinder would-be first-time buyers’ ability to save, while interest rates are expected to rise and home prices continue to swell in midlevel housing throughout the U.S.” I understood her to express that affordability would be the main driver of the market. When rates and prices rise together(and in some areas,taxes too) our buyer’s purchasing power is reduced.
Then this month Devon tweeted:
“I would not call this a tanking market. People are correctly thinking through when and where they should buy a home based on the full scope of their financial situation. As they should. Also, real estate markets have always operated on a cycle.” Again I am translating here(having been a Foreign Language teacher for 36 years, I simply can’t resist). She plainly states that this slower market was expected and is cyclical and for experts and veteran brokers, it’s nothing new.
Certainly from a negotiating standpoint it’s time for buyers to attack. More importantly to note though is that affordability IS back. As prices have leveled off or dropped and rates have stayed at 5% or less our clients can again enjoy their homes comfortably. I will keep an eye on the market, the graphs and the trends and as always I will follow Devon. Here’s my prediction: strong first half of 2019! So if you ARE in the market to buy, do it now. It’s a better time to negotiate.
COUNT ON ME!