Local Realtors are forecasting a strong year in real estate in the tri-county area, based on the strength of the local economy.
“It’s all positive and optimistic,” said John Tremaine of Tremaine Real Living Real Estate. “Things are happening; it’s going to be a great year.”
“It’s too early to forecast, but it looks like a robust year,” said Carol Ray, associate broker at Berkshire Hathaway Michigan HomeServices in Fenton.
Patrik Welty of Legacy Realty Professionals in Fenton expects to be up significantly this year. “We’re growing, even if our
Ken Brant of Brant & Associates in Fenton said, “I think our area is still going to be very strong.”
Buyers and sellers can still expect a shortage of inventory, but the supply crunch is expected to ease slightly in 2019, especially with the increase in new home construction.
“There are still inventory shortages, but not as bad as the last three to four years,” Brant said.
Ray said that many first-time homebuyers from five years ago are looking to move up, so watch for homes in the affordable price range to come on the market. However, if you’re sitting on a home priced under $200,000, you’ll still find bidding wars and multiple offers, many over the asking price.
“The under $200,000 houses are ‘flying off the shelves,’” Tremaine said. “Baby boomers are still gobbling up the under $300,000 properties.” He notes that many sellers take their homes off the market until spring, tightening the inventory until March or April.
Welty anticipates strong demand for any affordable listing in Fenton under $150,000. “It will be a catfight,” he said.
“More expensive homes are a different story. The affordable end is still very competitive; they’re a necessity for people experiencing job transfers, getting married or other life events. The purchase of a high-end more luxury home is not out of necessity. ”
Housing values are expected to increase this year, but at a very slow pace. Nationally, there might be a modest price growth between 2 and 3 percent, according to the National Association of Realtors.
Locally, Welty said that prices are up modestly, and, “In the last 90 days, it’s been relatively stable year over year. We’re stabilized.”
“Prices are at where they are at. They’ve maxed out for us in this area,” Brant said.
Nationally, mortgage rates are expected to hit 5.5 percent by the end of 2019, according to a recent story in USA Today.
“They’re forecasted to go up, but that can change in an instant,” Ray said.
Today’s rates of 4.625 for a 30-year fixed rate and 4.25 for an FHA (Federal Housing Authority) loan are down from a high of 5 percent in October.
“Mortgage rates aren’t rising right now,” Welty said. “They’ve been declining the last few months. People misinterpret the news they hear about the Federal Reserve. Stock market news and mortgage rates are two different things.”
Whatever happens in the market this year, there is one certainty: “You can still own a home cheaper than renting,” Ray said.
by Amy Wong
