As one year comes to a close and the doors open to the next, we peek inside the crystal ball to predict what the new year has in store. What can you expect from the 2019 housing market? Here’s a look three real estate predictions every current and future homeowner should know for 2019:
Affordability will remain a concern
Buyers have had it rough in recent years and it doesn’t look like that will end in 2019. Next year, expect home prices to increase by around 2.2 percent and mortgage rates to average 5.3 percent throughout the year and hit 5.5 percent by year’s end.
Home inventory will continue to increase – especially in the high-end market
Inventory hit its lowest level on record in the winter of 2017. But, in 2018, those levels began to recover. Expect that growth to continue into next year as experts are predicting inventory increase to remain moderate – less than 7 percent. While this is good news for buyers, it does mean there will be more competition for homeowners looking to sell. But, don’t let that fool you; the 2019 market will still be a good year for sellers. Just not as good as 2017 or 2018. In other words, if you are thinking about selling your home in 2019, you may need to adjust your expectations and know your home will not sell as quickly as it would of the past two years.
Meanwhile, high-priced markets will buck the inventory trend with double-digit gains. These double-digit gains will likely be seen in high-end homes in the metro areas of San Jose, Seattle, Boston, Nashville and more.
Millennials will dominate the home buying market
Millennials are now the biggest generational group of home buyers and are expected to account for 45 percent of mortgages in 2019, as compared to the 17 percent for Baby Boomers. Within this generation, there is some disparity as the dream of homeownership will remain tough for first-time Millennial buyers, whereas the slightly older move-up Millennial buyers will reap the benefits of both their home equity and the increased choices on the market.
No matter the age, Millennials will remain more price-conscious than any generation. In fact, you will see these buyers compromising on distance from an urban center and forgoing certain amenities and space to achieve homeownership.
How will the Austin market fare in 2019? According to Realtor.com, the Austin-Round Rock area will experience a 4 percent decline in home sales and a 3.7 percent increase in home price.
Do you have any questions about the Austin-area real estate market? Do you have any questions about these predictions? Give our team a call. We are happy to talk to you about the Austin-area and national housing market.