From the CEO: Spring Market has Sprung | blog.phmc.com

As the US slowly begins to thaw, home buyers and sellers climb out of hibernation and into the spring housing market 2019. While the grass is turning greener, home buyer enthusiasm is also starting to increase. Fannie Mae released its Housing Forecast with positivity for the remainder of the year into 2020. What does the prime season to purchase a home have in store for us in 2019? Is now a good time to buy a house?

Home Purchases will lead the market. Refinances slow? –

According to Fannie Mae, quarter 2 to see around 445 million, single-family mortgage origination. Of that amount, home purchases will make the majority at 337 million and expecting a 56% increase compared to last quarter. Mortgage refinances are predicted to slow to 108 million. However, with the amount of tappable equity the average homeowner currently has and rates remaining the same for majority of the year, more refinances may occur.

Mortgage Rates continue to stay low  –

Our current job market is stronger and wage growth has slowly increased. Though wages and the job market accelerated, inflation has not increased and shows no signs of doing so. Therefore, the Fed announced that there will be no more interest rate hikes for the remainder of 2019 in the March meeting with the FOMC. Many reputable industry professionals, like Mike Fratantoni, Chief Economist of the Mortgage Bankers Association believe the same.

Transition into Buyer’s Market –

January 2019 showed the slowest growth of home values since 2012, at 2.8%. Though values are still continuing to rise, it will be at a much slower pace. We’ve seen more homes for sale, and sellers are lowering home prices to be more attractive to home buyers. Throughout the rest of the year, we will see a transition from a seller’s market to a buyer’s market.

National Mortgage News posted an article listing 12 US cities with the most purchasing power. These cities were ranked based on the Real House Price Index, meaning the home values in the area compared to household income levels in that specific region. In short, how affordable is the average value of a home in a specific area compared to the cost of living and income made per household.

Is your home town one of the the best places to buy in Spring 2019?
Scroll below for the top places with the most purchasing power 👇

Note: Numbers go from greatest to least, with cities that became most affordable during the last year.

12. St. Louis, MO 

Year-over-year RHPI: 8.27%
RHPI: 67.79
Median sale price: $156,947

11. Memphis, TN 

Year-over-year RHPI: 8.19%
RHPI: 55.96
Median sale price: $129,580

10. Baltimore, MD

Year-over-year RHPI: 7.57%
RHPI: 81.11
Median sale price: $228,750

9. Washington, DC

Year-over-year RHPI: 7.41%
RHPI: 89.21
Median sale price: $366,726

8. Boston, Mass.

Year-over-year RHPI: 7.4%
RHPI: 86.59
Median sale price: $437,724

7. Oklahoma City, OK

Year-over-year RHPI: 7.21%
RHPI: 69.05
Median sale price: $146,625

6. Cleveland, OH

Year-over-year RHPI: 6.97%
RHPI: 50.61
Median sale price: $133,563

5. Chicago, IL

Year-over-year RHPI: 5.82%
RHPI: 66.23
Median sale price: $208,952

4. Hartford, Conn.

Year-over-year RHPI: 4.63%
RHPI: 75.13
Median sale price: $207,456

3. San Diego, CA

Year-over-year RHPI: 4.49%
RHPI: 95.57
Median sale price: $535,375

2. Portland, OR

Year-over-year RHPI: 4.06
RHPI: 96.9
Median sale price: $358,750

1. Seattle, WA

Year-over-year RHPI: 0.72%
RHPI: 90.04
Median sale price: $445,530

Thinking of buying a home?
The Spring Real Estate Market is heating up!

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