As we enter the New Year the sense of feeling that anything is possible is one that many of us get excited about. From leading a healthier lifestyle to cleaning up and cleaning out our closets; determining and writing out our goals for the new calendar year is something many of us do. But when it comes to the housing market, things are a little different. While we can’t write out our goals or plans, we can make predictions on what is to come by monitoring trends from previous years.
So, with the housing market of 2018 seeing its ups and downs, we’ve got four predictions for the real estate market in 2019 that you should keep an eye out for.
1. Mortgage rates will continue to rise
With steady climbing for the last two years, mortgage rates will rise to numbers as high as what we saw during the 2008 housing crisis. This will make affording a home tougher for some, but to get the most competitive rate possible, boost your credit score and try to make a larger down payment. You may even need to lower your expectations or budget to find a home within your price range.
2. Home appreciation levels will level off
With mortgage rates rising and causing some concern for home buyers, there is a silver lining. Home appreciation levels will slow in comparison to 2018, and this will cause the price of homes to slow as well, making it a good time to buy for prospective home owners.
3. Inventory levels should rise slightly
With the market favoring home owners looking to sell, the number of homes on the market will increase. This slight increase will cause inventory to grow and provide buyers with more options. While the forecast shows that there will not be a major spike in 2019, inventory levels will be good for buyers.
4. Millennials will be the largest pool of buyers
While the 2019 housing market isn’t shaping up to be the optimal year for home buyers, the largest cohort of millennials will be turning 29 this year. Making up 45-percent of mortgage paying adults, they will be entering peak home-buying age and increasing first-time buyer demand. While younger millennials will struggle to purchase a home, the older-tier millennials are predicted to be the largest pool of home buyers for the next decade.
While the forecast isn’t sunny and 75 for the entire year, the slowdown in 2019 will create a healthier housing market moving forward. The slower sales will allow inventory the chance to normalize and ultimately allow home buyers the chance to catch-up and support the demand in the marketplace.
If you’re unsure or have any questions at all about the current home buying market, contact us today at 919-295-9298 or send us an email at: [email protected]
We’re here to help!