No one can predict the future. But, according to Freddie Mac reports, the housing market continues to steadily gain momentum with rising homebuyer demand and increased construction due to a strong job market.
Low Interest Rates
Of course, the biggest factor fueling the positive market sentiment is likely the low interest rates. Rates declined in November, with the 30-year fixed-rate mortgage now averaging 3.66%. According to Freddie Mac’s chief economist, “Residential real estate accounts for one-sixth of the economy, and the improving real estate market will support economic growth heading into next year.”
Incomes On The Rise
That’s good news. And there is more. Incomes have actually grown this year. So, what do you get when you combine lower interest rates with higher income? More affordability for buyers! Now, that is a welcome sign.
But, Who Needs A Sign?
We can draw our own conclusions based on what we are experiencing. On what we know. And, this is what we know. In what has been labeled a “contracting market,” our numbers remain strong. So does our transactional count. We are still experiencing multiple offers in some local markets. Buyers are looking. Competing. Sellers are selling. Sometimes at surprising price points. Agents are busy. We don’t need a sign to tell us what we already know. And this is what we know — we live in one of the most beautiful places on the planet, and people have not stopped loving this place. And that is a good sign!
Lucky we live Hawaii!