You know it, the real estate market is constantly changing from time to time. One wrong move and you could be put off-guard with various factors.
Look for a house to buy without knowing the market, and horrible financial concerns could greet you. Invest in a property without enough info about the market, and you can have a bad return on investment.
You wouldn’t want that. Thus, read on, and know what’s up on the market this year.
What to expect on the Housing Market for 2019?
To help you prepare before making any real estate transactions, there are few 2019 predictions about the industry.
Blooming Overall Economy
The US economy is on a blooming season this past year, with experts expecting it to stand strong on 2019. High employment rate, an opening of new careers, the return of great paying jobs, low tax rates, and possible wage increase among others.
That gives better purchasing power to many people, pushing them to look for a home to buy. As a result, more and more buyers are going on the real estate market to find their ideal properties.
More New Constructions
Although you can expect a huge number of buyers in the market this year, there is a short inventory of properties available. To strike the balance of demand and supply, more new constructions are expected to come as well.
Great news for investors, isn’t it?
Higher Price Tags
Buyers are expected to have tighter competition among themselves, especially in getting properties they want. Thus, bidding could take place to get the favor of sellers.
This drives the price tags on the housing market on higher levels. Thus, it’s better to prepare quite a huge budget if you plan to buy a home, or know some tactics to gain the favor of sellers.
Mortgage Rate is on a Steady Increase
Since 2019, mortgage rates are observed to have a steadily upward trend, and it’s expected to continue this year.
For a clearer picture, mortgage rate just nailed below 4% around 2017. It has reached 4.75% in June of 2018, and will probably peak at 5% at the end of 2019.
Thus, if you’re planning to buy a new house property, better to do it now. Or before the year reaches halfway, at least.
More Millennials are gearing the Market
It was expected before that millennials will probably become renters. However, as they grow up and stands on a good career, more and more of them want to buy their own home.
Thus, if you’re planning to sell a home, it’s best to remodel it based on the taste and preference of these demographics.
With the high rate of buyers’ competition in the industry this year, you can tell that 2019 is a seller’s market. High mortgage rates, booming demand, and the blooming economy could easily tell that to you.
That could be a good sign for investors as well, especially if they would prefer to put their cash on new construction projects.
However, the first few parts of 2019 could be a buyer’s market, just before mortgage rates reach its high peaks. If you’re a buyer, you just have to prepare yourself for relatively higher price tags or know some tactics to successfully close a deal, as the real estate market is giving you a tough competition on 2019.
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