At this time of year, we’re all looking ahead to the future with hope and expectation. You probably have a New Year’s resolution all picked out. But as we look to the future, it’s important to look back for a moment and think about how far we’ve come. This year, the housing market has seen its fair share of highs and lows. From the introduction of new mortgage products to help get more buyers into homes to the Federal Reserve raising interest rates, which has caused the country’s housing market to slow down. Lots has happened this year to affect homebuying; here is what we see for the upcoming year!
Headlines for 2019:
Enter Millennials
A lot of millennial buyers are beginning to enter the home-buying market, and this could mean a real pickup for home sales in 2019 and beyond. As apartment rents continue to climb and home prices start to stabilize, a new generation of buyers, with new goals, new budgets, and new families, are beginning to look for starter homes. Gen-Z and millennials are a big demographic, and as they continue to move up in the workforce, they are sure to be looking for homes. Despite the myth that millennials would rather rent, they’re just as interested in home buying as everyone else—and more than any other demographic consider home buying a good investment.
Stabilizing Mortgage Rates
If you’re savvy and pay attention to real estate market trends, you’ll know that throughout 2018, mortgage rates have been steadily rising. In 2019, we can expect to see mortgage rates begin to stabilize; we have seen the interest rate market begin to settle after the four interest rate hikes and the stock market volatility of 2018. A downward shift in interest rates has arrived over the last 30 days. As the new year unfolds, we can expect to see further rate stabilization, which should, in turn, encourage buyers to venture into the market.
More Buyer Options
Even the most frustrated buyers can expect to see something to tempt them in the coming year. The housing market is moving towards equilibrium with the supply of homes increasing and demand diminishing. 30% of all homes are now selling below list price which is a trend reversal from the previous 3-4 years. This is great news for buyers who have time and can now seek bargains in the housing market. As the housing market continues to shift, new construction will start to further discount prices on their existing inventory and offer more incentives for buyers who want to build. There’s sure to be something for everyone, and by all accounts, it looks like a buyer’s market is in our future. If you’ve been waiting to snag your dream home, 2019 may be the time.
No matter what your goals are, 2019 is a bright future with lots of possibilities.
Buying a home is one of the biggest financial decisions you and your family will make. If you’re thinking about buying in 2019, come talk to us. Park Place Finance can help advise you on the best financial options for your family, and help you finance the home of your dreams. Contact us today.