What to Expect From the Housing Market in 2019
Well now that 2018 has wrapped, we can look towards 2019 and formulate somewhat of a forecast. Notice we said, forecast, not crystal ball! The ups and downs of 2018 are still fresh in all our minds and remind us that things can turn both ways really quickly.
In general terms, we are ending the year with favor shifting from sellers to buyers as home price growth (in the majority of markets anyway) has faltered and rates have continued to rise. Is this the curve we are on for 2019? Here’s a little of what you “may” expect according to the experts.
Mortgage rates will continue rising.
Most experts agree we will be reaching the 5.8% milestone, which we have not seen since 2008. However some people, most people… will continue to buy homes. Despite those rising rates, millennials in particular will keep buying homes. The largest group of millennials turn 29, which is also peak “household formation” and home buying age.
Inventory increases…a little
The supply crisis is expected to ease up slightly with inventory rising 10 to 15 percent. Most of that new inventory will be new construction and homes over $250,000.
In some markets and price points this increase is already starting to happen due to new construction, and more sellers listing – and this while the pace of sales has somewhat slowed. Still, buyers should be prepared to be patient and deal with potential shortages of homes to purchase. Also in some markets, inventory remains downright scarce. Ask Karen to help you determine market conditions and develop a plan for seeing everything that you should.
Home price growth will continue to slow.
Experts are looking at home price appreciation to slow to near 3%.
Long Term Forecast – An Economic Reality
Demographics are going to support demand. With slowing price appreciation, incomes can catch up with slower sales and inventory will increase. So the market can’t be considered “white hot” at the moment, but all things at play should help create a robust market particularly later in the year.
Sellers – Words of Wisdom
It is not the seller’s market of early 2018. Your home must be priced accurately and competitively to sell it. Karen can advise you on a very objective, well researched, strategically accurate price. Be flexible. Offer incentives to get the home sold and don’t reject taking an offer or cutting your price. This is particularly true on higher priced properties as there is substantial inventory in this category.
Buyers – Words of Wisdom
You are not as behind the eight ball as you think. Gone are the days of “act now or you’re going to lose this house”! Frankly that can always happen but things should stabilize as first time buyers may decide to wait, and a lot of existing homeowners will also delay the upgrade, choose to stay and LOVE their current interest rate.
Karen is ready to be your realtor. She is an award winning, top producing, full-service agent and equally exceptional representing buyers and sellers. In any market, buying and selling a home with Karen has never been better, easier and more successful. Love Where You Live.
