2019 Real Estate Trends
Some of you may already be thinking; What can I expect from the real estate market in 2019? This past year we saw an immense decrease in mortgage rates, buyers setting the stage for sellers and high home prices. Predicting what’s next for the industry is not completely cut and dry. Everyone has begun to weigh in on what will happen this next year in real estate. What we expect to come this next year could change with the wind for all anyone knows, but understanding where experts believe the market is heading is sure to be the most accurate source of information.
Here’s a compilation of the expert opinions of professionals in the industry who are predicting this year’s trends:
Millennials continue to dominate
It’s no surprise that Millennials already hold a large share of the housing market as they continue to invest with money they’ve never had before. Approaching the age of 30, they are in the financial position for the first time in their life to purchase their first or second home. David Ramsey says Millennials care about quality over size, location and keeping up a low-maintenance lifestyle. Their power will only get stronger and more prevalent in 2019.
Inventory will increase slightly
This is not to say that all the inventory troubles of 2019 will be gone, but rather they will lessen. Danielle Hale of Realtor.com claims we have the increase of homes on the market coupled with slowing sales to thank for the slight increase in inventory. Although the problem is getting slightly better, we’re not completely done seeing buyers sold the power over sellers. It will still be a great time to be a buyer r
Home Prices Continue Growth & Sales Decrease
An economic slowdown is on the horizon according to Congressional Budget Office projections. The office tells Patrick Sisson of Curbed that the GDP growth will be 1.9 percent, which is slower than usual. As economic growth slows, sales are decreasing as well due to the rising mortgage rates. However, home prices are still increasing. Ruban Gonzalez says we will see 3% growth in home prices, but this is slower growth than we saw in 2018. The continued percentage increase will keep the market afloat heading into the new year.
Apartment Arms Race
While millennials plan to dominate the housing market, not all of them can afford a house yet. This has caused landlords to enter into the apartment arms race trying to beat out one another with fancy amenities and residence perks. These insane perks include as much as movie theaters, dog parks and co-working areas. Apartments are doing all they can to increase their selling points to those Millennials who are not yet ready to purchase a home.
Whether you’re a Millennial buyer, looking into apartments first or going the luxury route, you can use this new wealth of knowledge to step on the right step from the very beginning. Let a new year of the housing market commence!