As a real estate investor, you always have to be aware of market trends which will impact the industry. Be prepared for 2019 by following these trends.
The US economy is becoming healthier
Many economists feel that the national economy is having a very strong run, and will continue to do so during the coming year. The main factors contributing to this overall good health are higher employment, lower taxes, increased wages, higher-paying jobs, and some career opportunities which never existed before.
The market is being driven by millennials
Millennials are a huge demographic group, and as they begin aging and settling in, they are reaching the age where home-buying becomes appealing. They are also becoming more comfortable with taking out mortgages, because they’re penetrating the workforce more fully, and obtaining jobs which pay well and which are of longer duration.
Increasing new construction
One of the biggest real estate trends of 2019 is strong demand for housing, coupled with relatively small inventory. This of course makes it a sellers’ market, and that will give rise to increasing new construction in many of the country’s major cities. Although new construction will probably begin rather slowly, it is likely to pick up in the second half of the year.
Prices will continue to rise
As compared to 2017, housing prices rose in 2018 by a full 8.1%, according to Zillow. When you consider the current imbalance of supply and demand in the housing market and how that is expected to continue into 2019, it appears likely that housing prices will continue to rise during the coming year, at a rate which is Zillow predicts will be in the neighborhood of 6.5%.
Mortgage rates will increase
Throughout 2018, mortgage rates steadily rose, and experts predicted by the beginning of 2019, those rates will be even higher. The Mortgage Bankers Association (MBA) has forecast a 5% increase in mortgage rates by the end of 2019, and other industry experts predict a similar rise, making it one of the year’s most distinctive real estate trends.
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