New housing predictions give reason for optimism,
Q. How is the market doing so far this year?
A. The housing market is stronger than most of us thought.
Late last year, the consensus was to expect interest rates to rise to 5-6 percent, appreciation to crawl and inventory to increase. Analysts were even betting on a break from the hot housing market, which began to breed concerns of instability.
But that buyer’s market is not in the cards – yet. According to an amended forecast by Realtor.com, there’ll be better outcomes for prices, rates and sales than we thought.
The Federal Reserve has a lot to do with that. Affordability’s been an issue for some time, and buyers have depended on lower mortgage rates to offset prices. With the Fed holding off on raising rates this year and prices slowing – not to mention more options – their fighting odds today are up. Way up.
After flirting with the 5 percent mark, mortgage rates sank at the start of the year and are closer to 4 percent or even lower today. According to the forecast, the magic number is now 4.3 percent.
There’s a new outlook for prices, too. Appreciation is expected to land at 2.9 percent for the year, higher than the 2.2 percent originally predicted. By all accounts, 2.9 percent is soft but stable.
The forecast is for 5.3 million homes sold this year, which isn’t better than 2018 but isn’t worse.
Realtor.com’s initial projection was for sales to slide 2 percent.
“We believe 2019 will be characterized by lower, but still increasing mortgage rates that will buoy home prices and sales by boosting buyer’s purchasing power beyond what we initially projected,” says Danielle Hale, Realtor.com’s chief economist. “This will create a slightly hotter, but still cooling housing market relative to the initial forecast eight months ago.”
Q. I just bought a home with a very small backyard. I’m an outdoor person, and I would love to entertain in my yard. Do you have any suggestions?
A. Whether you want a posh patio or a lush lawn, there are things you can do to get more for what you’ve got.
When designing a small space, it is important to hone in your ideas and make a plan for elements you’d like to incorporate into your yard. Decide on one large item to include in your design, such as a small pool, fire pit or dining table. Then, the rest of the planning will fall into place.
Design well thought-out zones by placing benches to create hard angles or other accent furniture pieces to give the appearance of different rooms. The strategic placement of outdoor furniture and, in turn, outdoor rooms, will transform your small backyard into an intimate retreat.
Give your yard a focal point. A beautiful statue, a grouping of plants, a water feature or a small, in-ground pool may take the attention away from the size of your yard and allow guests to focus on the beauty instead. Draw attention to the pool with a luxurious pool liner or creative poolside seating arrangement. The focal point should lead to the center of your yard or wherever the most natural path threshold occurs.
Utilize built-in furniture to save space. You can dress up built-in furniture with colorful cushions tied to décor inside your home to expand the feeling of the space.
Beautify your yard with flowers and plants. Consider vertical placements like hanging baskets, creeping vines and petite patio trees.
Send your question and look for your answer in a future column. Email Lynne@LynneFrench.com. French is the broker/owner of Windermere Lynne French & Associates. Contact her at 925-672-8787 or stop in at 6200 Center St., Clayton.