IN 2018, we saw a shift in the housing market from frenzy back down to surge/strong sales activity intensity.”In 2019, there will be many more opportunities for buyers and sellers in the residential housing market. Looking ahead, many positive factors will translate to a surge spring market and a strong market in the fall. Regardless of the market conditions, it’s crucial to work with a skilled broker who will guide you in the process of buying or selling. – J. Lennox Scott
More affordable and mid-price ranges
Heading into 2019, we anticipate the more affordable and mid-price ranges in all markets will go up one level of hotness after January 1 and surge level of sales activity intensity, then transition back down to strong/healthy for the remainder of the year. From January to April, we will see a mild increase in the median home price appreciation, which shows ip in closing into June. Then, price appreciation tens to flatten out the remainder of the year due to large number of listings that come on the market over the summer, creating dispersed buyer energy. For the luxury market, we will see a continuation of selective buyer activity.
New listings from this point forward are coming on at market price, premium pricing came off and sellers have repositioned to current market price. However, due to the market adjustment, homes priced right for their hyperlocal market may still receive multiple offers.
Though multiple-offer situations will not occur as often in 2019 as they did in the past, they are likely to occur alongside more traditional transactions close to the job centers. Buyers can miss out on opportunities when they don’t understand their hyperlocal market and underestimate competition from the backlog of buyers. When a property is priced right, it’s key to come prepared, working with a skilled broker for the best chance at securing the home of your choice.
Buyers – Buyer Ready, Day One
For buyers looking to enter the housing market in 2019, it’s important to lead with any strong motivating factors to move, coupled with marker research. This research should include checking recent transactions for the last several months and reviewing the six phases of the yearly housing cycle to fully understand your hyperlocal market. Additionally, bing Buyer Ready, Day One is crucial to securing the home of your choice, in the internet age being prepared to act quickly is key.
Buyers in 2019 will have good selection of homes available for sale, and many buyers may have the opportunity to arrange inspection, finance or home-to-sell contingencies.
Sellers – Market Ready, Day One
The best time to sell is when the timing is right for you. Buying and selling within same-market timing often results in the same net seller asset equity any time of the year. While this is typically the case, there are certain scenarios that could have a new asset equity differential, so it’s important to examine your individual situation to make an informed decision. When looking to sell, it’s important to work with an experienced broker to showcase your home in the best light to get the best price.
When looking at key factors that lead to a healthy housing market, many key factors are positive – so what can we expect in the year 2019?
Despite some headwinds, there are still many positive signs in the current residential housing market. Job growth, the number one indicator of a strong housing market, remains positive.
Millennials, who have been longstanding homeowner holdouts in many cases, have begun to enter the housing market. According to recent study, the desire to purchase is present – 52 percent of millennials hope to purchase a home within the next two years. But for some, high student loan debt can be a large homeownership barrier.
At the start of 2019, interest rates will be in the upper four percent range and are forecasted to rise to 5.3 percent by year end. Though interest rates are higher than they’ve been in recent years, it’s important to put our current rates in perspective – they are still historically low.