Since the recession back in 2008, the real estate market has recovered very well. However, the speed of that recovery may be slowing down soon. Many real estate experts actually think some of the monetary policy decisions will cause a recession at some point in 2020. However, they don't see the real estate market imploding like it did in 2008.
It's not uncommon for the real estate market to fluctuate and it has favored the sellers for quite some time. Here's a look at some of the signs of the housing market slowing down.
Whenever inventory increases, it can be the first sign of things to come. When the real estate market starts to cool off, it usually happens when more inventory becomes available.
Currently, homes throughout the country, including Mint Hill, are selling at a record pace as they are only staying on the market for about one month if priced correctly. If these homes start to stay on the market for two months or longer, it could be an early sign of the housing market slowing down. Usually, this is seen in the condo market first.
Drop in Prices
Another indicator of the housing market slowing down happens when prices start to fall. When prices drop by 10% or more, it's a sign the market is going south. Right now, this isn't an issue, the median sales price in Mint Hill has increased by 5.9% in the last 12 months. However, if prices start to drop, even by just a few percentage points, it could show signs of the housing market slowing down.
Changes in Government Policies
If the government makes changes to the tax laws or the interest rates rise, it could cause the market to slow. The new property tax bills in the Mecklenburg County could play a factor in the real estate market but with interest rates still being very low, the higher tax values might not have a negative impact on the demand. With caps on mortgage and SALT (State And Local Tax) deductions, as well as a national election coming in 2020, the market could slow, but it's too soon to tell how much it will change.
While the housing market isn't expected to hit a significant slowdown, many believe it will slow down going into 2020. Prices may continue to rise at a steady pace, but not as fast as they have over the last few year or so. Even though the market may be slowing down a bit, partially because of the upcoming holiday season, experts still expect it to remain steady over the next several months and in 2020.
We would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to us at 1st Choice Properties Inc.
Anna Granger, BIC
980-272-6300 | www.1stchoicepropertiesinc.com