Key Real Estate Market Trends to Watch Out for in 2019
5 Trends That Will Shape the Real Estate Market in 2019 and Beyond
Near the end of every year, people start wondering what they should expect from the upcoming year’s real estate market. With so many experts warning of an impending housing bubble situation looming somewhere down the road, potential buyers are more on the fence than ever when it comes to the current state of the real estate market.
So, what should you expect out of next year’s market? Here are five trends that are shaping up to give you an idea of what the spring market is going to be like.
1. A Rise in New Construction
New construction is expected to pick back up again in 2019 after a bit of a lull in 2018. This will especially impact the southern states like Texas, where a lot of construction is taking place in Dallas, Houston, and Austin.
However, you should expect the new construction to develop slowly so it won’t have that big of an impact on the demand for housing throughout the year. In fact, for much of the rest of the country, buyers may still have to deal with supply shortages for at least the larger part of the year.
2. Mortgage Rates Will Continue to Climb
In 2018, mortgage rates started climbing and there are no drops expected any time soon. In fact, the rates are predicted to climb even higher in 2019, with 5% rates looking to be a realistic possibility by year’s end. Because of this, you can expect the spring market to be fierce, with more buyers looking to lock in the best rates of the year.
3. Prices Will Continue to Climb
Over the last year, home prices rose by just over 8%, and this trend is going to continue into the new year with some experts saying prices should rise by another 6.5% before they cap. Just how high the prices will go will depend on the area.
For instance, you can expect home prices in cities like Seattle, New York, San Francisco, Miami, and Los Angeles to see the largest spikes. The rise in prices in these areas will benefit home sellers and investors who will be able to charge higher rents as a result.
4. Millennials Will Drive the Market
Millennials are reaching the age where they are becoming more interested in settling down, and for a lot of them, this includes purchasing homes instead of renting. As such, millennials will make up a large percentage of buyers in 2019, if not the largest percentage. This is also more likely as millennials get settled in high paying careers.
5. 2019 Will Be a Seller’s Market
The question on everybody’s lips is – will 2019 be a seller’s or a buyer’s market? Based on the facts that the economy is healthy, demand for housing will grow, and mortgage rates and home prices will rise, everything is pointing to next year being a seller’s market. So, that’s good news if you’re planning on selling, but if you’re buying, you should expect to find yourself in a few bidding wars.
Start Looking for a Home Now With Homes.com
With prices and rates predicted to climb in 2019, why not start your search for your next home now? At Homes.com, we can help you find the perfect home at the right price in the area where you want to live. Get your house before the market changes in 2019.