Good News for Home Buyers (and Sellers)

2018 was a year full of discouraged home buyers, the market soared with low interest rates and the influx of younger, first time home buyers; resulting in home prices rising and inventory decreasing faster than it could be replenished.  If you were able to buy a home in 2018 consider yourself fortunate.  Those that have seen the fluctuation in home trends over the last 10 years should be happy with the upcoming 2019 prediction.

Expect Low Mortgage Rates

The Federal Reserve is expected to keep rates low in an effort to curb rapid inflation, the Quantitative easing program was wildly successful over the last 8 years, and has brought out economy back to the golden age.  It’s expected that rates will stay low (or even drop further) in the last half of 2019.  You can easily sign up for rate trends by clicking here.

More Houses Will be Available

If you’ve been looking for a house in the last two years you’ve seen how fast they can sell, that is a result of low inventory.  New construction is up from last year and homes are becoming more plentiful.  This means prices will not skyrocket as much as last year and buyers will be able to purchase more homes.

The Market Will Decide

With certain real estate markets surging and becoming increasingly less affordable, we can expect to see a younger professional crowd start to encroach on other markets.  There has been an increase in millennial buyers migrating to the Midwest and South because the homes are easily accessible and within their price range.  With the advent of work-from-home jobs, we are seeing this adjustment more and more each year.

 

The Take Away

2019 and 2020 are likely going to be good years, allowing us some breathing room from the hustle and bustle of the 2018 market.  Buyers are likely to take their time more, real estate agents won’t be as frustrated and sellers will still be able to get a fair price for their home.  The market will ease into a more neutral space that isn’t rapidly inflating the local economy.  That being said as more high wage earning professionals start to migrate towards these areas, we will see a steady and affordable rise in the market.

 

Thank you,

What Can I Do Now?

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Justin Scott

Loan Officer