As we begin 2019, we can expect home prices and interest rates to keep rising.
What can we say about the 2018 Tri-State market? What can we expect from our market moving forward in 2019?
In general, 2018 was a good year for real estate. Sales were down 3% across the Tri-State area, but the average sale price rose almost 6%. Similarly to 2017, though, there weren’t enough homes on the market, and a lot of buyers couldn’t find what they were looking for, which caused that 6% appreciation.
As of now, the average sale price in our area is the highest it’s been in the last 20 years. Late in 2018, interest rates began to climb a little bit and passed the 5% mark for the first time in nearly 10 years. Historically, though, that’s still very low.
We expect interest rates to continue rising in the new year. Right now, the average 30-year fixed rate stands at about 4.875%, and by the end of 2019, it should rise to 5.4%. This rise should help our supply of inventory and give buyers more homes to choose from. In 2018, there were just under 4,900 home sales, and I expect us to have a similar number of sales in 2019. I also expect appreciation to continue in 2019, but, because of rising interest rates, it won’t be as strong.
Of course, these are general stats from our Tri-State area as a whole, so keep in mind that market conditions can vary from county to county. For example, sales in Spencer County were down 20% in 2018, but they were up 18% in Perry County. That’s why, if you’d like a more in-depth analysis of your county within the Tri-State area, I’ll be doing a more comprehensive market review on January 17 on our Facebook page.
In the meantime, if you have any real estate questions or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.