More on where the market is heading in 2019

If you are really curious and willing to do lots of reading and observing graphs to see where the market is heading, I highly recommend you take a look at Sacramentoappraisalblog.com by Ryan Lindquest. He is the guru we realtors go to to ask questions about the market. 
If you want the shorter version, read on. Below, I have a summary of what Ryan had in his most recent article. 
1) During the second half of the year, rates hiked and there was a strong negative reaction to it by the buyers. Rates then went down. Great but affordability has gone down as well. It's not 2013 any more when rates were low and affordability was high. IMHO, rates aren't going to play a big role in this market. 
2) This past December was the worst since 2007 in regards to sales volume. Volume was down %25 since the previous year. In fact, in the past 20 years, we have had only two other Decembers where it was lower than this past one. Is this a trend? Let's wait and see. I think it is but not every month will be %25 lower than the previous month. My opinion: Buyers are reacting to affordability (or lack of it) and dragging their feet. Sellers haven't got the message yet and are asking yesterday's price. Resulting in higher inventory, increasing "Days on Market". 
3) If you scroll down and see my previous post, you will see that we had a "sexy", as R. Lindquest calls it, 2018. But when you look closer, you will see that the numbers for the past 3 to 6 months weren't anything to write home about. 

So, I expect prices to come down due to higher inventory due to low affordability. 
Call me if you had any questions.