The housing market changes from season to season and year to year. What does 2019 have in store for buyers and sellers? The forecast looks promising. Here’s what the year may hold:
- Millennials will buy the most homes. According to Realtor.com’s forecast, the majority of buyers in 2019 will be millennials, accounting for 45 percent of mortgages. They predict the year will be tougher for first-time buyers, and millennials moving up in the mid- to upper-tier price points will make up the majority of sales. Only about 17 percent of home buyers will be baby boomers and 37 percent Generation X.
- Expect rising mortgage rates. “Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed-rate mortgage reaches 5.8 percent — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow told Forbes Magazine.
- More inventory will hit the market. Last winter, housing inventory hit the lowest point in recorded history according to Realtor.com. They predict that increases in 2019 will stay low, but nonetheless increase by about 7 percent. “… the inventory increases or slowing price increases necessary for a more widespread sales gain are not forecasted to happen in 2019. While the situation is not getting worse for buyers, it’s also not improving notably in the majority of markets,” the article on Realtor.com states.
- Home buying power will decrease but this could benefit home buyers. Tendayi Kapfidze, chief economist for LendingTree told Forbes, “Most homebuyers budget a monthly payment. As rates rise, a fixed monthly payment translates into less borrowing capacity and buying power is down about 10 percent since the same time last year. As there are less buyers at each price point, the appropriate market response is a slowdown in sales and an easing in price momentum.”
- More homes are available for home buyers as flipping is at a low. A recent survey shows that home flipping is at the lowest level in more than three years, which makes more room for consumers to purchase homes.
What does all of this mean for you as you move into 2019 and want to sell your home, buy a new home or both? The conditions of the market will affect different people in various ways. That’s why you need an expert in your corner to help you navigate a sea of ever-changing market conditions. Contact our office today to figure out your best strategy for moving this year!
Looking for real estate services in Gainesville, Haymarket or Bristow? Contact your local real estate expert Belinda Jacobson-Loehle ofJacobson Realty and Home Staging today. Also be sure to sign up now for a FREE copy of my eBook, “The Real Estate Key – What You Need to Know!”
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