What to Expect From the Real Estate Market in 2019
The 2018 housing market was exciting, especially in Austin. What can we expect to see on a national scale this year? According to a new report from Forbes, it’s going to be another whirlwind year.
Mortgage rates will continue to rise. While mortgage rates have remained lower than they were during most of the recession, they are projected to reach well over 5.5% this year.
Millennials will continue to make up a large portion of buyers. Millennials will likely make up the largest segment of buyers in 2019, accounting for 45% of mortgages.
Home sales could drop. But only slightly. It’s expected that home sales will decline by 2% this year as homebuyers struggle with higher mortgage rates and rapid price increases, especially in urban areas.
Inventory troubles could ease. With more inventory hitting the market and the pace of sales slowing ever-so-slightly, the market could see a better balance between inventory and demand.
Home price growth may start to levelize. Home price appreciation will slow around 3% overall, based on the recent pattern of higher inventory levels.
Buyers could see less competition. With higher inventory and more balanced prices, homebuyers could have a better shot at getting that dream home.
National rents will rise, but so will inventory of apartments. As high rates limit living situations for individuals across the board, a surplus of apartment-style living in large urban areas could mean a small drop in price later on.
For more predictions on the 2019 housing market, read Forbes’ 2019 Real Estate Forecast: What Home Buyers, Sellers and Investors Can Expect.