
By Janet Besheer
Last year was quite the year for the United States economy. We have seen unemployment go to record lows, businesses reestablishing themselves here at home and the stock markets have hit record highs.
Although economists are predicting we are moving toward the end of the record-breaking, 9.6-year, bull market, we are not there yet. The economy in 2019 should continue to grow, albeit at a slower rate than 2018, but the good news is the next recession will probably not arrive in 2019.
Home prices around the country rose throughout 2018 with limited inventory and low mortgage rates. According to the National Association of Realtors, “The imbalance between supply and demand is squeezing entry-level housing the hardest.”
Pundits suggest the housing market will slow down well into the year. 2019 looks to bring a stabilization of supply of homes for sale and vacancy rates for rentals, both of which are inching up again. Mortgage interest rates will rise in 2019 which will impact buyers and lower sales prices of existing homes.
First-time home buyers will be most affected. The good news here is that mortgage interest rates should remain below 6 percent, which is still an historically low rate. So what does mean this for real estate in our area?
According to the recently released Saratoga County Real Estate Index, Saratoga County led the entire Capital Region in single-family home sales and was the only local county to see an increase in single family home inventory over the past year along with the most single-unit building permits issued.