The majority of the economists and financial experts say that the housing market of the US will be in for a stronger track this year than it was initially foretold despite the falling rates of mortgage. A recent study conducted about the US housing market indicates that price growth and overall prediction of sales along with much lower interest rates will make the housing market more appealing and affordable.
Now, economists predict that home prices will increase by almost 3 percent, which is a 0.8 percent increase than they previously forecasted at 2.2 percent. On the other hand, overall sales are anticipated to maintain a flatline in 2019 and are expected to decline by 0.3 percent by the end of the year. According to economist Danielle Hale, there was a change in the prediction of the housing industry because of an unanticipated plummet of mortgage rates that happened in January 2019.
But this is quite different from what Wall Street insider and top financial expert Paul Mampilly predicted last year. According to him, for over a decade, the US housing industry continuously enjoyed the 5 percent to 7 percent rate. This greatly helped families since they are able to resell their homes after a few years and earn profits from it.
However, Paul Mampilly said that in 2019 the rate will considerably drop to 1.5 percent and will remain for quite some time. As a result, families and real estate companies will be profoundly affected. Instead of reselling their homes, families will be forced to hold on a little longer before selling it in order to build equity.
This means lesser overall spending and lesser money fueled back to the economy. Paul Mampilly said that if this happens and continues on a long term basis, the booming housing industry of the US will not much longer. For those who are not familiar with Paul Mampilly, he is at present a senior editor at Banyan Hill.
Paul Mampilly has spent more than two decades in Wall Street and was able to help investors maximize the profitability of their investment. He holds a master’s degree in business administration from Fordham University. Paul founded a newsletter at Banyan to serve as a guide to average investors.
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