2019 Real Estate Forecast to for Buyers, Sellers, and Investors
I think everyone in the local and national real estate industry will agree 2018 had its ups and downs. At the start of the year, it was definitely a sellers market. Interest rates were relatively low, and the overall prices for properties was extremely high. As we progressed through the year, interest rates started to climb. This shift in the market started to push home prices lower and lower. When it finally came to a close, the cost of getting a loan was the highest it had been in almost 10 years. Property values were also much lower than they had been in the first and second quarter.
The big question on everyone’s mind is will these trends continue.
What Will Interest Rates Look Like in 2019?
All of the local and national experts agree interest rates aren’t going to get much better in 2019. While this doesn’t sound great at first, there are a few things to keep in mind. Seeing how the economy is in such a strong place, interest rates could be much much higher. The current cost of getting a loan is still lower than it was during most of the recession.
If you’re on the fence with buying now or waiting till later in the year, the smart choice is clear. Right now, you can get a 30 year fixed for right around 4.5% APR. Many top economic and real estate experts agree this is going to push clear up to almost 6% in 2019. If you’re looking to make an immediate purchase, please contact us to help get the process started.
National Property Prices Will Drop in 2019
With the increase in interest rates and supply in national property, there will be a steady decline in price. Many experts are forecasting almost a 2% drop in market value across the board.
If you are considering selling a property, sooner might be smarter than later. With this slow down in the real estate market, you’re sure to get a better return the earlier you make the move.
Millennials Will Be Making The Investments
After analyzing the different buying groups, it looks like Millennials will be the ones making the purchases. There are a huge number of people from this demographic finishing college and starting families. These will be the ones making immediate investments. Most Millennials haven’t been keeping an eye on the real estate market and interest rates for the last several years. They don’t know how much more expensive it is to get a loan than it was even 12 months ago. This is going to drive them to make immediate investments.
Apartment Rent Will Go Up in 2019
Everything is getting more expensive. Apartment and condo leases will be no different. The increased costs for renting property will be another factor that pushes Millennials to buy their own homes.
There’s no question the national real estate market is going to slow down in 2019, but don’t lose the faith. There’s always a correction in these kinds of things. If you can survive this hard period, 2020 is shaping up to be something special.
If you live in Lehi, Orem, Provo, American Fork, or Pleasant Grove and are looking for a real estate agent, we would love to talk. W² Realtors is one of the fastest growing local real estate agencies. When you engage with us, we guarantee you’ll get the lowest priced agent commission and the most robust service. Please give us a call at 208 709-6042 to setup a free consultation!