If you’ve been paying attention, you saw the stock market go up and down, this past summer. And, you saw the Fed doing what some have called a ‘song and dance’. In fact, these mixed signals combined with some mixed real estate market activity. As a result, it’s not surprising mixed opinions arise about our domestic market’s health. That said, at least in San Mateo County real estate, even with some of its own, unique ups and downs, market health has been stable overall. And, that bodes for the 3rd quarter real estate market barometer, in general.
3rd Quarter Real Estate Market Barometer Summer 2019
According to the San Mateo County Real Estate Report, home sales fell 11.8% from July. Although, they were up, year-over-year. And, they were up by 14.3%. In fact, according to the report, that broke a nine month losing streak. At the same time, we’re seeing reports by pundits like Bloomberg on existing homes sales, nationally. Those reports show existing homes sales on the rise. Also, they show sales rising at the fastest rate, in more than a year. It may even be the fastest, in over 2 years. In fact, a rise in August/Sept time period has a strong showing. Also, that seems true for both to multi-family and single family homes.
The 3rd quarter real estate market barometer for 2019 should also point out main factors behind a marked rise in home sales. These factors include higher wages and lower mortgage rates. Although, coupled with the most recent Fed rate cut, by a quarter point, home sales will likely continue on the rise. Add to that the Fed’s recent statement that the U.S. economic outlook is solid. Then, you get more demand and affordability.
New home construction also had quite a showing for August. Interestingly, home builder permits reportedly rose, to a 12-year high. Although, what about Labor Dept. unemployment filings? Well, if the pundits are correct, they are approaching a half-century low.
Of course, these are all signs that the economy and job market are still healthy. And, that’s a good sign for upcoming months. In fact, low mortgage rates and high American sentiment could help propel that forecast through 4th quarter, 2019.