Sound Off Michelle Hennessey What real estate market trends can we expect in 2019?
Though there is no crystal ball to see the future of the real estate market in 2019, there are definite trends that are setting the tone for the market in the new year.
Mortgage interest rates will continue to rise. Experts predict that by the end of 2019, mortgage interest rates will be 5.5 percent or even higher. Despite this projected increase, mortgage interest rates remain historically low.
For buyers, now is the time to buy before home purchase power is further impacted by higher interest rates.
Millennials will make up a key share of buyers in 2019 as their income increases and as they start and grow their families. Realtor.com expects that millennials will account for 45 percent of mortgages with 37 percent going to Gen Xers and 17 percent to baby boomers in 2019. Millennials are a big demographic group and as they are getting older and settling down, they are getting into their home buying years.
For sellers, correctly pricing a home for sale is now more important than ever. Buyers are well-educated on the dynamics of the market and they are highly concerned about over-spending. They are looking for incredible value and they will not consider a property unless it represents a significant value proposition.
Al Filippone Associates,