Housing Market Trends to Watch For in 2019 |
Posted: May 3, 2019 |
If you are looking to sell your home this year or move into something new, the process - even that first search in Google - can be overwhelming. From financial investments to moving into the right neighborhood with the right amenities, you may wonder if the 2018 housing market is in any way reflective of the 2019 housing marketing. However, understanding this year’s housing marketing is vital before you decide to buy or sell a home this year.
In 2018, we saw mortgage rates remaining lower than they had in the early days of the recession - with the darkest year being 2008. Unfortunately, the 30-year fixed mortgage rates are projected to reach 5.8% in 2019; however, we still see people buying homes. Even with housing being less affordable, there is massive potential that new home buyers - millennials turning 29 and 30 - will invest in the house of their dreams. It is projected that millennials will make up nearly half of mortgages in the U.S.
We make also see overall home sales drop in these 2019 housing market trends. This decline isn’t projected to be much, just a few percent, because buyers will fight with higher mortgage rates after years of growth following the recession of 2008. With this decrease in sales, we may also see a decline in home buying power. As the mortgage rates rise, it means there is less borrowing capacity because a monthly payment becomes more difficult to afford. However, with fewer buyers in the housing, it may help ease the momentum in rising prices.
Both commercial and individual investors will battle for property, and in some major cities were big corporations are buying, such as in New York City, rent for apartments will continue to rise as other apartments may not be built during that time. However, there is still hope. Increased interest in apartment construction may help to remedy the problems with rent being above income level in the coming months and years. 2018 gave way to some heavy competition, so the goal of 2019, and even 2020 should be to reconcile wants and needs in the housing market.
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