What is the Real Estate Forecast for 2019?
With the new year in full swing, many homeowners, as well as potential home buyers and sellers, are wondering what the 2019 real estate market is shaping up to look like. We're highlighting some of the biggest national market trends and predictions for this year according to the experts. Here's what you need to know!
What Buyers Need to Know in 2019
Inventory will continue to increase next year, but unless there is a major economic shift, don’t expect a buyer’s market on the horizon within the next five years. Unfortunately for buyers, it’s only going to get more costly to buy in 2019, especially the most-demanded entry level real estate. To be successful, buyers should think through how they’ll adapt to higher rates and prices. Buying a home will be a more expensive undertaking in 2019 as mortgage rates and home prices increase. Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid-to higher-end price tier, not entry-level.
What Sellers Need to Know in 2019
Although it remains a seller’s market, sellers will need to be mindful of their increasing competition and shouldn’t necessarily expect to name their price and get it in full — which is a change from the past few years. Above-median priced sellers, may find it will take longer to sell and require offering incentives, such as price cuts or other offerings. With less demand in the market, there will be fewer bidding wars and multiple offers. However, with inventory expected to remain limited in most markets, sellers who price competitively can still walk away with a handsome amount of profit, but not the price jumps observed in previous years.
What Homeowners Need to Know in 2019
Here's a summary of the national market predictions and trends, according to realtor.com:
- Home price growth will continue to slow, with a forecasted increase of 2.2 percent
- Inventory increases will remain moderate with less than a 7 percent increase
- High-priced markets will buck the trend, with double-digit inventory gains
- Millennials will account for 45 percent of mortgages vs. 17 percent for Boomers
- New tax plan will be good for renters, mixed for homeowners
Realtor.com® Forecast for Key Housing Indicators:
- Mortgage Rates Average: 5.3% throughout the year, reaching 5.5% (30 year fixed) by year end
- Existing Home Median Price Appreciation: Up 2.2%
- Existing Home Sales: Down 2%
- Single-Family Home Housing Starts: Up 8%
- Homeownership Rate: 64.6%
Real estate market predictions are like weather predictions and are subject to change, but you can observe the driving forces and key housing indicators to see how they push the market in one direction or the other. Stay tuned!
Let us know if Century 21 Action Topsail can help you if we can help you navigate the local coastal North Carolina real estate market. We have the experience and professional guidance you need so you don't have to go it alone.
Contact us today and we'll get help you with buying or selling your home and answer any questions you may have.
What 2019 real estate trends matter most to you?
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