Each year brings something new to the real estate market. Month to month the market can change drastically. A buyer or seller that is looking at 2019 as their year to jump into the market should pay attention to the trends. Navigating through an ever-changing market is easier if a buyer or seller knows what to expect.
Something that has gotten increasingly popular but many people still do not know much about the process is using blockchain or iBuying to complete real estate sales. This is something real estate agents will need to familiarize themselves with to better help homeowners and buyers who choose to use this technology.
Unfortunately, the days of low mortgage rates are becoming a sweet memory of years past. These rates have been steadily increasing over the last few years and will continue to do so in the upcoming years. Rates are going to be at their highest that anyone has seen in the last decade.
With higher rates, there will be fewer buyers on the market. People tend to try to buy when rates are most favorable for themselves. As rates get higher it pushes out many potential buyers that just cannot afford the higher payments. This drop should be around two percent which still means there will be people looking to buy.
Since home buyers are seeing higher monthly payments there will not be as many people buying. Buyers who could only make a purchase because the rates were so low are going to be pushed out of the market.
People have seen the value of their home steadily increasing. While this will continue in 2019 it is going to be at much slower rates. The appreciation of homes is expected to be around three percent over upcoming months.
The majority of the buyers on the market will continue to be Millennials. They are at the ideal time in life to be investing in real estate for the first time. Many have settled into careers and are looking to avoid paying rent. Despite the fact they are facing higher mortgage rates in some places it will still be cheaper than renting.
There are likely to be fewer buyers on the market with the rising mortgage rates. Coupled with the fact there are new builds going up in many places the drastically low amount of houses for sale is going to be slightly more balanced in 2019. While there will not be a huge surplus of houses, it will not be so competitive for buyers attempting to make a purchase.
With more inventory and fewer buyers, it would seem the pressure is off for those still looking to buy. This is not the case. Buyers who are still in the market are going to feel pushed to make a purchase sooner rather than later to avoid the mortgage rates rising any further.
As more people are pushed out of buying a house by the rising rates there will be demand for renting. This demand will help to slightly drop the amount needed to rent an apartment or house. There are many investing in building new apartment complexes which will open up new opportunities for renters.
The new year is going to bring about change in the real estate market. There will still be plenty of buyers looking for new homes and they may be more aggressive than before. With the rising rates in many areas, homeowners may find the buyer pools slimming and their value of the home barely increasing. Buyers and sellers will want to decide if 2019 is the year to make a change or wait out the market until rates begin to drop again.