Mental preparedness is important when tackling the real estate market. You have your house ready to sell and you know what you are looking for in your next home, but what now? The real estate market varies year to year so understanding market predictions is key to mentally preparing for what might happen. Here are some insights into what experts are expecting to see in 2019.
Overall, housing inventory remains tight.
- After the surplus of last year’s housing inventory, this year will be a little different. There will be less homes for sale, which will prompt sellers to raise listing price as a result of high demand. However, with high rent costs preventing potential buyers from saving for a down payment and a potential increase in mortgage rates, buyers may be hesitant on submitting offers and may postpone their search.
REALTOR.com predicts the rate for a 30-year fixed mortgage to reach 5.5% by the end of 2019.
- As we just mentioned, it is predicted that the rate for 30-year fixed mortgages will reach up to 5.5% by the end of 2019. This rate increase could cause buyers to put on the breaks and wait until financing a house is more affordable for them. The demand will decrease as mortgage rates rise. Alternatively, the added inventory won’t make it a buyer’s market because the inventory will be a result of the rising mortgage rates and expensive rent.
Millennials will run the market.
- The Millennial trend continues as their generation is the largest single group of home buyers in the current market and this is not expected to change in 2019. In contrast to the popular assumption that Millennials are the renting generation, more and more of them are looking to settle down as they age. Their current demographic puts them at an age where they are at the prime of their career, making a good amount of money and are comfortable with taking out a mortgage.
No matter what the 2019 market has in store, you can conquer any real estate transaction with a seasoned, professional REALTOR®. They have the experience needed and information handy to make sure you are successful. To find an agent near you, click here.
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