Housing juggernaut, Fannie Mae says that unlike the past two years that were mostly a seller's market, 2019 is looking to be a more balanced market.
The housing market should see stability in 2019 as a moderation in higher home prices combined with continued strength in the labor market according to Fannie Mae.
"We expect full-year 2018 economic growth to come in at 3.1% – an expansion high – before slowing markedly to 2.3% in 2019 and 1.6% in 2020," said Fannie Mae Chief Economist Doug Duncan. "Fading fiscal policy, worsening net exports, and moderating business investment all contribute to our projection that GDP growth will begin to slow in 2019.
Duncan added that there could be some good news ahead for homebuyers, although first-time buyers could still face challenges.
“If mortgage rates trend sideways next year, as we anticipate, and home price appreciation continues to moderate, improving affordability should breathe some life into the housing market,” he said. “We also expect residential fixed investment to resume a positive growth trajectory amid continued rising housing starts and stabilizing home sales. However, affordability is likely to remain an industry concern, particularly among first-time homebuyers."