Stay ahead of local market trends
As a real estate professional, clients look to you for advice about what's going on in your local market. So as the year winds down, it could help to spend a few moments researching the latest trends nationwide.
Strong employment figures, rising wages and the predicted growth of the U.S. economy by as much as 5% may suggest a sunny 2019 for the housing market.1 Home prices in most metropolitan areas are also predicted to increase anywhere between 1.5% and 16% with Philadelphia, Tampa, Las Vegas and Los Angeles leading the pack.1
But what about your local housing market? Here are four ways to help evaluate what 2019 may have in store.
This is one of the best indicators of how hot or cool a market is. Use the latest 2018 sales figures for the past six months to help you figure out whether the absorption rate is speeding up or slowing down. As you know, the less time a home takes to sell, the hotter the market.
Just as it's a good barometer for the housing market nationwide, construction in your area is a good indication of a healthy market. Pay attention to new development as well as any demolition and renovation activity around your neighborhood, as they all may be signs of an upturn.
Compare your local market's latest figures on population growth with the figures for new construction and inventory to get an idea of whether the area is heating up. If population is on the rise, but construction and available homes for sale aren't keeping pace, that points to a surge in demand — which means local home prices will probably increase, and houses will spend less time on the market.
The Bank of America WeeklyWrap®
For a great market data resource, ask your local lending specialist about our WeeklyWrap. This weekly e-newsletter offers up-to-date information on inventory trends, absorption rates, year-over-year sales comparisons and more. Contact your local lending specialist for details.
Whatever 2019 may bring, your local lending specialist is ready to provide your clients with answers to their home financing questions. The specialist can also walk them through the types of home loans available from Bank of America — including fixed- and adjustable-rate mortgages and low down payment options like our Affordable Loan Solution® mortgage.
1"US Housing Market 2019 — Is a Buyer's Market Forming?", GordCollins.com