As dark as the data appears in the housing market, there appears to be some light–as faint as it may be–that could be enough to spur a comeback in 2019. Generationally-low unemployment levels and rising wages have started to translate into more home ownership, particularly in young adults, according to Dr. Natalia Siniavskaia, an economist and a vice president for housing policy research for the National Association of Home Builders.
“We have noticed an increase in homeownership rates among young adults, suggesting that those who are able to live independently are now more likely to become homeowners than in recent years,” said Dr. Natalia Siniavskaia.
Furthermore, the Fed may be more open to pausing rate hikes in 2019 as it begins to sense that economic growth may be starting to overheat.
“I don’t think (the report) derails the Fed this month, but perhaps it opens the door to a more flexible approach going forward,” said Dan Mulholland, senior bond trader at Crédit Agricole.
For more real estate trends, visit ETFTrends.com