Real Estate Trends Expected in 2019December 20, 2018
Wondering how the new year will affect the real estate market? While there’s no telling what changes 2019 will definitely bring, we can share some predictions. Here are a few of the real estate trends expected in 2019:
Prediction #1: Increased Inventory
Recently, as you may have known, the housing market has been unsuccessful in keeping up with consumer demand. In fact, this time last year saw the lowest recorded housing inventory. This year, things are starting to pick up, as more and more people are beginning to list their homes for sale. It is predicted that the inventory nationwide will grow by approximately 7 percent. While this isn’t a drastic change, it is certainly a welcome one.
This is great news for prospective home buyers, but sellers, on the other hand, are getting the short end of the stick. Increased inventory of homes would mean that sellers will have more competition. This will require sellers to re-adjust their strategies in order to pull ahead of the competition.
Prediction #2: Affordability Will Remain an Issue
Despite a predicted housing inventory increase, affording a home will not be any easier in the new year. Mortgage rates and home prices are expected to once again rise in 2019. By the end of next year, mortgage rates could rise from 5 percent to 5.5 percent, making monthly mortgage payments on most homes 8 percent higher.
Prediction #3: Millennials Will Remain in Control
Older millennials are finally ready to settle down and purchase a home. Student loans and the fierce housing market caused this generation to get off to a rocky start in the housing market. Today, millennials are the largest generational group of home buyers–making up 45 percent of mortgages. They are expected to continue to dominate home buying, as more have saved up enough money to afford their own place.
Prediction #4: The Effects of the New Tax Law Are Up in the Air
The GOP proposed a revision of the tax code, which was expected to turn away potential home buyers. While no one will know for sure until tax season rolls around, renters are predicted to have lower tax bills. In contrast, homeowners and home buyers are predicted to be paying more on taxes. Furthermore, mortgage lenders are expected to take a hit, as people will be less likely to take out big mortgages as a result of these new tax laws.
Lakeside Title Is Here to Serve You!
Lakeside Title provides title insurance and numerous title-related services, all while making sure your transactions and funds are protected and secure. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers, and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!