Now that 2018 is in the books, what should buyers and sellers know about this past year’s market? What do the market trends from 2018 tell us about 2019?
The final numbers aren’t out yet, but we estimate that homes appreciated by 8% over the course of the entire year. Most of that increase happened during the first half of the year; after that, prices generally flattened out.
Interest rates started the year at 4%, but now they’re around 4.75%, and we expect them to continue to rise in 2019. Of course, the higher interest rates rise, the more expensive homes become for buyers. For example, getting a $300,000 mortgage would cost $133 per month more at today’s rate than it would have a year ago.
Building costs are extremely high right now, but that’s not stopping builders from building and buyers from buying. There are some fabulous communities being built right now along the Wasatch Front, so make sure you contact a knowledgeable local agent before you walk into any of these properties so you know what you’re getting into and you get the best deal possible.
Nationwide, we’ve seen a general market slowdown. As interest rates have risen, inventory has increased as well. In many places, inventory is at a five-year high. Here in Utah, we’re starting to see this same trend. As inventory levels have risen, homes have stayed on the market longer. This is good news for buyers, who now have more homes to pick from.
We’re looking forward to a fantastic 2019, so if you have any other questions about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.