With a new year comes predictions for the year to come—including what will change and what will stay the same. In order to keep up with these changes—and the market—it’s useful to understand what is happening and why, and the world of real estate is no different. Here, financial voice Forbes has outlined some potential real estate trends for 2019. We’ve summarized a few of them for you below.
- Home sales could decrease. Though the decrease in home sales may sound troubling, its rate of change is 2 percent. This means that while you may notice some differences, they won’t become overwhelming. That’s right—you can still sell successfully in the new year.
- Home costs could grow—slowly. They say that slow and steady wins the race. As you’re considering selling your home, the profit margin is poised to increase. However, with a current rate of 3 percent, don’t astronomical increases in profit could be limited.
- Millennials will likely take out the most mortgages. That’s right—millennial homeowners will join the ranks, becoming one of Forbes’ real estate trends for 2019. With an estimated 45 percent of them paying out a mortgage, millennials have surpassed the generations before them in the current market. As for everyone else, 37 percent of Generation Z members and 15 percent of baby boomers will be paying off mortgages.
- Mortgage rates should continue rising. When you take out a mortgage, it’s important to make sure that you assess the rates that come with it. A lower rate means paying less in interest on your home as time goes on. Though it may seem worrisome that mortgage rates are increasing, the good news is that home costs are growing slowly. This means that when you take out a mortgage, you won’t see an immense hike in price from year to year. Additionally, because of that trend, you can spend more time earning money for a down payment, which will decrease the amount you’ll have to pay for a mortgage.
- There could be less competition in the market. While a free market system needs competition to thrive, with too much competition, it can sometimes become oversaturated with options. In this case, less competition will be an advantage for buyers. Their offers and money will have more power, and they won’t have to compare to many others in order to secure their dream homes. This makes 2019 a great time for potential homebuyers!
Home buyers and sellers alike can look forward to the advantages of Forbes’ real estate trends for 2019. Whether you want less competition in the market or need a bit more time to save up for a down payment, you can make the current housing market work for you.
Ready to find or sell your home this year in the Auburn, Opelika or Lake Martin areas? Then it’s time to contact Ryan Roberts here. As for learning more about real estate, local events, and the community, you can also check out our blog.