Market Check In

We are halfway through 2019.

Yes, you read that sentence correctly. It's hard to believe, but this year is really already halfway over! With school getting out and summer starting, it's easy to forget how quickly time has flown by, but it is important to take a moment and check in with how you're doing so far this year.

So, we figured we would check in with the real estate market and see how things are going at the halfway point for 2019.

Mortgage Rates Raise Questions

After decreasing for months, the mortgage rate seemed to pause last week, leading some to believe that they may be leveling out.
According to The Washington Post, the 30-year fixed-rate mortgage rate was 3.82% last week. The 15-year fixed-rate average slipped to 3.26%, and the 5-year adjustable rate landed at 3.51%, down from 3.52% a week prior.
Rates have dropped throughout 2019, and according to Market Watch, have only reason 7 weeks this year. Currently, experts are torn on what will happen to the trend of mortgage rates.
Shashank Shekar, CEO of Arcus Lending, told the Washington Post he expects rates to continue to fall looking at inflation numbers and federal spending. Elizabeth Rose, a certified mortgage planning specialist at AmCap Home Loans, told the Post however that she expects rates to remain steady as trade talks continue and inflation numbers remain "tame."

Slow Sales 

Despite low mortgage rates, homes are selling slowly, and although there was a slight increase in home sales for May, the market is underperforming according to experts.
First American Chief Economist Mark Fleming told Housing Wire that we are in a "homebody era" and many homeowners feel "rate-locked into their homes."
"Looking ahead, more than half of all existing-homes are owned by baby boomers and the silent generation and they will eventually age out of homeownership," Fleming said. "But right now, housing supply remains tight - you can't but what's not (for) sale - and market potential is lower because of it."
According to the Wall Street Journal, existing home sales have fallen for 15 straight months; however, there is hope on the horizon according the NAR, as May ended with 1.92 million homes available, up from last year.
While some homeowners are starting to realize the selling potential, as one Realtor told the Journal, it's not the push that everyone was expecting or wanting this summer season.

Home Value Increase Slows 

While home values are up from where they were this time last year, it seems the increase is starting to slow down.
According to Yahoo Finance, 33 of the 35 top U.S. Markets slowed in May, with the exceptions of Indianapolis and Cincinnati. The average U.S. home value fell in May, which is the second monthly decline after 85 months of back-to-back increases. The average U.S. home value sat at $226,800 in May.
Although two months of decline after an 85 month growth period may seem alarming, Yahoo Finance says the decline is showing that home values are "flattening." Some experts say the slowdown is welcome, and returns a sense of "normalcy" to home values after an aggressive season for buyers. Regardless of feelings, market trends point to this "flattening" of home values to remain.

Realtor Opinion 

In May of this year, the National Association of Realtors released the Realtors Confidence Index, a report based on a monthly survey sent to over 50,000 real estate professionals.
The survey reported that properties were on the market for an average of 26 days, and first-time buyers accounted for 32% of sales. Of those who were surveyed, 82% said they saw home prices remain constant or increase during the month of May, and cash sales accounted for 19% of deals.
With regard to the top issues in the market, Realtors surveyed said low inventory and interest rates were the biggest factors affecting the market.
To see more from the survey, check out the report here.