The U.S. economy is currently strong, with members of the workforce earning high wages and experiencing low unemployment rates. If consumers’ incomes continue to rise and favorable interest rates on mortgage loans continue to be available, the market potential for homes will experience a short-term boost. More buyers can afford to purchase homes because of the lower interest rates and higher wages. As a result, First American Financial predicted that home sales would increase by more than 50,000 in April of 2019.
In March of 2019, growth remained steady, although a nationwide inventory shortage held back the potential for substantial growth. The spring season is consistently the prime purchasing season for homes, so agents can expect to see an influx in homes being put up for sale and purchased between now and the end of June.
The strength of this year’s prime home-buying season has taken some by surprise, due to the housing market’s inventory shortage over the past few months. Ongoing supply shortages mean that potential buyers are competing for a limited number of homes for sale, resulting in lower sales at the start of 2019 when compared to sales in 2018. However, lower interest rates and rising wages have boosted the demand for housing, pushing homeowners to consider selling to maximize their returns.
Between February and March of 2019, the average house-buying power increased by $6,000, according to First American Financial’s chief economist. These factors are all impacting the surge in the home buying market, setting the U.S. up for a strong spring.
Source: National Mortgage News
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