After the high interest rates of 2017 and the lingering ripple effect it had on the 2018 housing market, 2019 brings some promising changes.
2018 started the year off with high priced homes and a scarce selection of inventory to choose from. Inventory prices soared 48% since their 2011 low-point according to Lawrence Yun, the National Association of Realtors chief economist.
2019 brings a different change to how homes will be bought and sold. Predictions from various sources, including Lawrence Yun, believe that the inventory for the housing market will rise, while the prices will remain competitively steady. In addition to the price stability and inventory spikes, the amount of buyers will decrease, due to the actively rising mortgage and interest rates.
It’s being predicted that inventory could rise from 10% to 15% in the 2019 housing market.
The home values for 2019 are still expected to rise around 2% – 3%, but that is a noticeable decrease compared to the previous year’s home value increase of a 5%. While the balancing prices will range, depending on the type of home being listed, the recommended type of home purchase for first-time home buyers is a townhouse, considering it’s cost efficiency and home layout.
The real estate market is shifting and everyone involved should be well-informed about these potential changes.
Listed below is more information on the previous and future predictions for the housing markets.