What Real Estate Trends Can You Expect in the Fourth Quarter?

posted in: Mortgage News 0

real estate trends

Financing for homebuyers can no doubt be a complicated affair. From choosing between various loan types, deciding on an adequate down payment, and selecting a mortgage loan company, it is no easy task.

Add to this complicated equation mortgage rates, and you may decide to stay put. Before you decide to unpack all your moving boxes, there is good news!

Real estate trends for the last quarter of this year are projected to be favorable and will not pose any additional financial risk to your home purchase.

Like any investment, we all want to enter the market with the best case scenario. We want to know that we’re getting the best deal, at the best price, and with the most favorable rates.

So if you are considering purchasing a home from now until the end of 2018, read on to learn what to expect from the real estate market.

Fourth Quarter Real Estate Trends 2018

1. House Prices Steadily Lowering

In recent years, home prices skyrocketed. There was no doubt that it was a seller’s market. The demand was high, and the supply was low.

In the fourth quarter of 2018, we cannot expect home prices to drop drastically, but prices are slowly, but surely, leveling off. This trend is leveling the playing field for buyers and sellers leaving room for a fair deal to be made.

Do not expect to purchase a home at a low-ball price but do expect to make an offer that is reasonable and either slightly lower or at asking price.

2. Here Come the Millennials

Expect to see a slight increase in millennials purchasing their first homes!

Millennials are slow to commit to long-term investments, but they are finally entering the real estate markets at higher rates. For the end of 2018, we can expect to see more millennials purchasing homes and settling down.

A mix of misinformation, getting married at later ages, and education debt may be to blame for the lack of millennial home ownership, but this generation is steadily making up ground. Currently, 37% of millennials own a home, which is 8% less than baby boomers when they were between the ages of 25 and 34.

3. Mortgage Rates Steadily Rise

Homebuyers can breathe a sigh of relief to know that even though mortgage rates are projected to continue increasing, they will not reach 5% by the end of the year. It is predicted that mortgage rates will reach 4.8% by the end of the fourth quarter.

While this real estate trend is a frustrating occurrence, it is also a manageable one. No one wants to pay more in interest, but with home prices leveling off, home ownership before the end of the year could prove to be a fruitful investment. Unfortunately, mortgage rates are predicted to continue rising in 2019, so the sooner you can lock in a mortgage rate the better!

Feel Prepared for Real Estate Trends in the Fourth Quarter of 2018?

Keep up with real estate trends and the latest mortgage and home buying news by visiting our blog.

If you are currently seeking financing for your first home or would like to refinance your current home, then contact today to get a fast quote in three easy steps!

We at 7th Level Mortgage are an experienced team of mortgage professionals based out of New Jersey and serving the east coast from Pennsylvania to Florida including Delaware and Maryland. We have won numerous awards for our excellent professional work and reputation with clients for being extremely diligent, accessible and hands-on throughout the entire mortgage process.