What's In Store for Real Estate in 2019?
Hard to believe we’re already halfway through the year! While home sales continue trend lower than the previous year, there’s still a few busy months left of the buying season. Though, it does feel that the trends for the real estate business have been set.
With just six months to go until 2020, we’re looking at some of those trends that are expected to continue – even in to 2020.
In 2019, the real estate market saw an increase in both home prices and mortgage interest rates. So, while the economy was recovering and unemployment was at an all-time low, costs still kept some buyers from being able to purchase.
Interestingly enough, the increase in mortgage rates is directly influencing the rise in sale price. Luckily, the latter is expected to increase at an extremely low rate.
The trend continues that the amount of houses on the market remains low.
In fact, according to Danielle Hale chief economist at Realtor.com, though there has been some growth since the number of homes for sale hit the lowest level in recorded history last winter inventory is still at less than 7 percent. Hale shared these findings at the ALTA Advocacy Summit in Washington D.C. earlier this year, which was reported on in Title News Magazine.
While the same increase in houses on the market is promising, it is being met at the same time with price increases making buyers less eager to pull the trigger.
And, ultimately, there are still not enough houses to keep up with demand.
Hale also reported millennials will make up 45 percent of mortgages, compared to just 17 percent of boomers.
While this trend isn’t altogether too surprising – millennials are getting older and finding steady income – it can mean a different market.
While it still is a seller’s market, it helps to consider just what their market is looking for.
According to DaveRamsey.com, millennials are shopping online first before going to see in person. They want high quality photos and aerial footage to really get a good feel of the house before they step foot inside.
A plus for some homeowners, millennial buyers are more concerned with the sustainability and malleability. So, while size still can be a concern, for most first-time buyers they aren’t looking for a large home but rather one they can make their own. They want clean, open spaces that are low-maintenance.
So, what does this all mean?
While it may seem like a mixed bag of sentiment, overall it’s a positive thing for buyers and sellers. Overall, there remains a large group of eager new buyers who, thanks to market influences, are making smarter choices in the homes they choose to purchase and ultimately mean a greater profit for sellers.