The new year is just heating up, and we anticipate some great new inventory to enter the spring market; however, experts say the housing market may finally start to cool down in the latter part of 2019.
“For the last several years, we’ve seen really frenzied home buying and prices tracking skyward, and I think in 2019 we’re starting to see a little bit of a shift,” said Cheryl Young, senior economist with the housing website Trulia.
Increased prices, decreased inventory
Home prices are still on the rise, but Young said they’re climbing at a slower rate. Even still, affordability will be a deterrent for many homebuyers in 2019, due to high prices and a “really tight” housing inventory.
Higher mortgage rates
Mortgage rates are another major player in market projections for 2019. Last year, rates reached a seven-year-high. While they’ve since dropped, it is expected that they will “go up a little later this year,” making homeownership even more challenging
for those on a budget.
Millennials rush the market
The good news is that the millennial generation, those entering their 30s, will enter the housing market, making up almost 45% of the buyers this year. Student debt, which gets in the way of saving for a down payment, continues to be a hurdle for homeownership
with millennials, but Young said the generation is, and will continue to be, the largest cohort jumping into the real estate market this year.
Sellers get out of the driver’s seat
Sellers have held the upper hand for several years now with low housing supply and a lot of demand; however, Seller power will likely lessen in 2019, according to experts, as home-price growth starts to slow.
Article provided by WTOP, By Rachel Nania, January 14, 2019