Whether you’re selling or buying, here are the 2019 real estate trends you need to know about.
1. Home Prices Are Rising Slowly With Less Offers
Unless you’ve been living under a rock, you’ve heard that throughout 2017 and early 2018, home prices made a huge 10% jump. This year, though, it may be a different story. Home prices are expected to rise in 2019, but at a much slower rate, and the quantity of homes for sale is expected to increase by a mere 1%.
What’s the reason? Well, part of the reduced speed is due to increased mortgage interest rates and another part is because of the whole economic uncertainty. That arrangement is enough to discourage many buyers who are on the fence about buying a home.
What Higher Prices Mean for Sellers
A pleasant profit may be on the horizon! The number of houses sold next year is still estimated to rise, even if it’s at a slow pace. That’s great news for sellers! But keep in mind that many buyers are being priced out of the marketplace, which could direct to fewer offers for your house.
What Higher Prices Mean for Buyers
If you’re going to purchase a home in this pricey market, you have to find out how much house you can afford. Crunch the numbers yourself and figure out a monthly payment your financial plan can handle.
2. Mortgage Interest Rates Are on the Rise
It’s been few years since mortgage rates were this high. But despite grumblings, that doesn’t signify the economy is in danger. It means the opposite! To help steady the strong economy and increasing inflation during the past few years, the Federal Reserve increased short-term interest charges.
What Higher Mortgage Interest Rates Means for Sellers
In a nutshell, plan for your home to be on the marketplace a little longer and get ready to possibly receive fewer offers. A mortgage is a huge commitment, and adding higher interest rates to the mix will formulate many buyers pause.
What Higher Mortgage Interest Rates Mean for Buyers
Although mortgage interest rates are the uppermost they’ve been in a while, they’re still comparatively low. If you’re not purchasing with cash, be smart and go for a straight 15-year fixed-rate mortgage. That way, you know precisely what your expenses will be over the life of the loan.
3. The Majority of Home Buyers Are Millennials
Guess who’s taking over the homeowner leader board? Yep, you better believe it. Millennials are busting out all above. They’re getting older and discovering stable careers. Their household income has increased and they’re looking to purchase their first homes in middle and upper-middle-class neighborhood.
Whether you’re selling or buying, you can take benefit of the present trends by partnering with the experts on the Laura Wucher Team.