12 Dec What’s ahead for the U.S. real estate market in 2019?
U.S. market predictions for the housing sector in 2019 are based on the economists’ belief that the U.S. economy will continue its present growth. This growth includes new and higher paying jobs and lower taxes. This is a positive economic environment for development of the real estate market.
Is 2019 a seller’s or buyer’s market? While 2018 was a seller’s market because the shortage of new home construction accompanied a strong demand for new homes, 2019 will show growth in new home construction. Is it enough to make it a buyer’s market? Probably not. Experts predict a slow recovery in new home construction, so it will likely still not be enough in 2019 to keep up with demand. Millennials will continue to be a growing demographic looking to purchase new homes.
What about mortgage rates? As seen here in this chart from Freddie Mac, mortgage rates steadily increased throughout 2018. Mortgage experts predict the rates will continue to increase well into 2019, as much as 5% by the end of the year 2019.
Looking at home prices, Zillow has predicted that prices will increase by up to 6.5% in 2019. The Zillow analysis further shows that interest mortgage payments are rising at twice the rate of home values. Another Zillow analysis highlights the trend of Americans moving to areas with lower home values, especially families with children. The birth rate has actually shown a decline in cities with the highest home values.
What are the top cities for real estate investments? According to a report from the National Real Estate Investor, top cities for new real estate investments include Dallas/Fort Worth, Brooklyn, Raleigh/Durham, Orlando and Nashville.
Are you planning on making a real estate investment in 2019? The team of experts at Barsh & Cohen can handle the legal work required for commercial/residential closings. Contact us for a consultation.