Does the recent slow down in real estate sales portent a larger issue of a slow 2019 market? From what I have read I think things may slow down a bit but as I have said before, as long as the economy is strong we will still have a good real estate market in California; people need to live somewhere and right now we have a shortage of housing and a low unemployment rate so there will be buyers and sellers.
Market Watch recently ran an article that indicated the market is more mortgage rate sensitive than usual because the sting of our last bubble burst is fairly fresh. Click here to read the entire article.
They say sales will be tied to what the Fed does with rates even with a strong economy. The Fed is saying it will most likely raise rates once more this year then possibly hold for a bit. Forecasters are saying in a year they could be as high as 5.8% up from 4.75% which they are now. Still a decent rate but could slow sales down a bit. Time will tell but trying to read the crystal ball is enlightening.
