All You Need to Know About the 2019 Housing Market
Over the past half century, the American housing market has both boomed and crashed, much to the dismay of homeowners and economists alike. Selling, buying, new construction & development, renting; all have different levels of change that they fluctuate through. However, based on past knowledge, these trends can be, at least somewhat, predicted. See below for some of the predictions of 2019, as given by the U.S. News & World Report.
In 2019, you can expect mortgage and interest rates to be at their highest since 2011. Though high mortgages do stimulate the economy, they can be a huge problem for prospective home buyers so keep this in mind through your search.
This decline of home buyers that comes from high mortgages will lead to a slowing of home selling, and a slowing growth of home prices across the U.S. There is also a rise in the growth of companies who provide cash for the quick sell and renovation of homes, due to convenience for the seller.
New Construction and Development:
Following the recession, the amount of new commercial development has been steadily rising, but the rates are slow, and are not enough to supply for the housing demand. The slow development rates are leading to rising prices in home buying. But there is one positive that comes out of the slow rise: there isn’t an oversupply, which is what contributed to the recession in the first place.
Renters actually benefit from the declining rental demand! Home ownership rates are at a high since 2010, which means less competition for renters and more power in the renters to bargain for better amenities; rising income and low unemployment also benefit renters in the recent years.
Investing in real estate is incredibly high-reward, but make sure you’re educated before taking the leap! Contact us for questions and more information today.