2018 was a year full of real estate ups and downs. While it is impossible to know exactly everything that is going to happen in real estate during 2019, some predictions have been made about where it is headed.
Mortgage rates will continue to rise – while there had been a steady rise to mortgage rates happening over the last couple years, this year there we will see a bigger increase than before – reaching about 5.8%.
Home sales will drop – it is estimated that home sales will decrease around 2%. With the increased mortgage rates, it is estimated to be a slower year.
Inventory will slightly increase – slightly higher inventories will be able to satisfy the also increasing first-time home buyer demand. For a majority of markets, the number of homes put up for sale or newly built, are slightly greater than the amount of sales.
Less buyer competition – while there will be more homes on the market, the are more in the mid to higher end pricing tier, meaning that this won’t necessarily help our first-time home buyers.
Slow down in home price growth – it is predicted that home price appreciation will slow down to about 3% which is based on the prediction that there will be a slight increase in inventory levels.
Technology will continue to change – which means it will continue to change the way buying and selling a home is done. The technological innovation in the real estate world is only advancing and is changing the ways buyers and sellers interact with each other.
Millennials are buying – 2019 means that millennials are getting even closer to the peak age of house buying. They will make up for the largest segment of buyers in the upcoming year. They will be accounted for 45% of mortgages!
While 2019 is predicted to be a slow down in the real estate industry, that doesn’t necessarily mean that it is a bad thing. With a slow down in sales, the inventory now has a moment to breath and catch up and normalize. This can be great for the near future in the housing market!