2019 is here and with it new predictions for what will happen in the real estate market. In 2019, expect mortgage rates to increase. Costs will increase for home buyers, which will create a higher demand for rental properties.
Technology advancement
Technology will continue to advance and change the real estate market this year. Real estate technology has evolved rapidly, and services like Zillow and Trulia have changed the way buyers, and sellers think of the market. It’s necessary for investors considering purchasing a property to realize and understand the difference between value and price.
New buying patterns
Baby boomers currently living in traditional two-story homes will start looking to downsize and move into ranch-style homes. A one-story house means no stairs to navigate into old age. This transition will cause the value of one-story homes to increase as they become higher in demand.
Millennials will continue to purchase homes this year. Experts predict millennials will account for 47 percent of mortgages this year, compared to 37 percent of Gen Xers and 17 percent of baby boomers. They’re looking for affordability and quality of life, meaning they need to trade in urban life for the suburbs.
Approximately 1.5 million Americans who were forced into foreclosure during the Great Recession of 2009 are eligible to buy homes again this year, as foreclosure law states you must wait ten years. While some from this group may be worried to buy again, others are itching to get out of a rental and own their own property.
Dive in retail accents
Malls and other brick and mortar retail stores have been struggling to stay afloat in recent years due to the online economy. That won’t slow down this year, so expect to see more vacant retail properties. Often, these properties have excellent potential for multifamily redevelopment, so it’s possible we’ll begin to see these properties used in this way.
New construction
New construction projects will continue to pop up around the country this year. A steady increase of new buildings means there will lower rent growth, but above long-term averages in rent across the United States.
Low inventory
After the housing bubble burst in 2018, foreclosure properties were plentiful, and inventory was of no concern. Now that the market has stabilized and the economy is back in a stable place, there aren’t as many available homes for people to choose from.
Real Estate Trends for 2019
