A new year means new beginnings. This also means a new year for the housing market. Last year, we saw the housing market’s ups and downs. But how will 2019 be? What should be expected in the housing market this year?
Here are the things to expect in the housing market for the year 2019;
Mortgage rates will continue to rise
For the past 2 years, mortgage rates remain lower compared to its rate during the recession. The rate is below average for the type of strong economic growth we have today. For the year 2019, we will already feel the changes. The fixed mortgage rate reaches 5.8 %.
Millennials will continue to buy homes despite the increasing rates
Despite the continuous rate increase, millennials will keep on buying homes. The largest group of millennials will turn 29 next year. This age is typically the home-buying age. It’s the age where most people buy their home thus contributing to the increasing rate of first-time home buyers.
Home price growth will continue to slow
For 2019, many experts believed that home price appreciation will continue to slow nearing 3%. The basis of this assumption is the recent pattern of inventory levels showing a continuous increase. This increase will be sustained in the coming years.
Technology will continue to affect the real estate industry
Innovations in technology continue to grow affecting the real estate industry. The existence of blockchain, iBuying, machine learning, and artificial intelligence change the interaction between sellers, buyers, and investors. Technology threatens the traditional real estate industry.
Overall home sales will drop
For this year 2019, home sales are expected to decline around 2 percent. Ruben Gonzalez, chief economist at Keller Williams stated that they’re expecting that 2019 is another slower year. It is because buyers continue to argue about higher mortgage rates after competing with rapid price growth for several years.
There are lots of things to expect in the real estate industry for the year 2019. It includes the slowdown which will create a healthier housing market for the years to come.
How will these trends affect you as a seller, buyer or an investor? How will you handle these trends?
If you need more tips and information, especially about real estate and investment, you can call Rajanikanth Maddhi at 720 5151051 for professional assistance.