2019 Real Estate Trends
As 2018 comes to a close and a new year begins, the real estate industry experiences new trends. Some of the changes you’ll experience in 2019 are subtler than others such as Zillow making their move into Canada. Read on to learn the seven trends that will shape how each Realtor does business.
There were many expectations for home buying in 2018, lets look at the 2019 predictions.
- The new trend in consumer shopping and home investment moves the most popular month to purchase to the fall, according to a study by the National Association of REALTORS. You’ll see residential home buyers make the first week of fall – September’s final week – into the week to close on a property.
It not only becomes the time to buy a home, but the most popular time to begin a home search. That means the late summer months will become busier for those looking to sell a home. Local markets will still vary slightly, but nationally this applies.
Early fall presents the best conditions for buyers. It has developed as a time of higher inventory, less competition and stable prices. Prices remain stable through November, according the three year data set used for the trend forecast.
- Home prices will increase early in the year due to low supply but high demand. This makes things tougher on first-time home buyers. The beginning of the year will present a tougher situation since the buyers will have snapped up all the affordable housing during the early fall.
- While it’s a seller’s market, seller’s haven’t wanted to sell. This trend continues into 2019, causing further shortages. Instead of selling, the owners offer the properties for rent and they’re making steady income as landlords.
- Millennials comprise the new leaders in real estate investment. The strong economy and their increasing incomes has encouraged their participation.
- Look for mortgage rates to rise in 2019, while homeowners will gain equity and have an easier time borrowing money. This makes acquiring funds for renovations or remodeling easier.
- Millennials aren’t the only ones experiencing the positives of a strong economy. There’s been steady employment growth throughout and positive economic indicators. These make it easier to get home loans.
- In 2019, construction starts will rise to meet demand. In 2018, single family housing starts increased by eight percent. This wasn’t enough to meet supply demand though. The coming year brings an increase, but it’s forecasted to be too small to fill demand.
All trends beginning in 2018 and continuing into the following year combine to create a true seller’s market. We are still on the lookout for some technological real estate disruption for 2019. While demand exceeds supply, buyers have a much easier time acquiring loans than in the recent past. The youngest home buyers, millennials, experience an easier time due to positive economic indicators and increasing salaries. For those who can locate one in their price range, 2019 may very well become the year for many people to buy their first home.