Home Price Expectation Survey and Real Estate Sentiment
Posted by Betty Rauch - 954-410-1960
Purchase and Refinance Market Outlook Improve for 2019
First American Real Estate Sentiment Index
wirtten by Mark Flemming First American Financial Corp. June 18, 2019
Title agents and real estate professionals had a positive outlook for the overall purchase market in the second quarter of 2019, likely due to declining mortgage rates and a strong labor market As might be anticipated, unexpectedly lower mortgage rates boosted the outlook for growth in refinance transactions compared with one year ago.
Title agents and real estate professionals are more optimistic about price appreciation growth now than they were at the end of 2018, but slightly less optimistic than a year ago. Survey respondents expect residential house prices to increase by 3.8 percent in the next year. The outlook for price appreciation is up 1.7 percentage points from the fourth quarter of 2018, and down 0.4 percentage points from the previous year.
Changes to house prices in part reflect the relationship between supply and demand. As demand increases relative to supply, price appreciation increases. Slower house price appreciation and declining mortgage rates in 2019 have increased affordability and boosted demand. Housing supply, however, has been slower to respond. Increased demand and limited supply will likely result in faster house price appreciation again in 2019.
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