The housing market from 2018 has undoubtedly noticed its vicissitudes.
2018 began with soaring home prices, traditionally low mortgage rates and a clear-cut advantage for sellers. Home value increases have wavered in these last months. Rates have escalated to their greatest position in approximately eight years and advantages have begun to move from the seller to the buyer.
Are such trends on the same track? Is the housing market going to undergo a similar roller coaster in 2019? This is what the professionals think the 2019 real estate market will experience:
Mortgage prices will keeping increasing.
“Although there’s been a consistent rise in mortgage rate since two years ago, mortgage valuations stay lower than they’ve been throughout most of the recession and less than normal for the kind of robust economic boosts of late. This will alter in 2019 once the 30-year fixed mortgage rates move to 5.8% — something that we haven’t observed since the bleak times during 2008 as rates plummeted after the housing crisis.” — Zillow’s head of economic research, Aaron Terrazas.
Millennials are still going to buy homes — in spite of the increasing rates.
“Housing in 2019 is going to be defined by sustained mortgage rate growths and swelling demand from millennials. Because of how it’ll probably make housing less affordable, rising rates are going to stop certain homebuyers from entering the market. The biggest group of millennials is going to be 29 this year, so they’ll be at peak home-buying and household development age. This will add to the demand for first-time buyers that’s been on the rise.” — First American senior economist, Odeta Kushi.
“Millennials are going to keep up with their demographics in terms of being the biggest group of buyers in 2019. They take up 45% of mortgages as opposed to 17% of Boomers and 37% from Generation X. Although first-timers are going to have challenges in 2019, more mature Millennial move-up consumers will notice more choices in the mid-to-upper price ranges. These wealthier constituents account for the bulk of Millennials closing next year. 2020 is anticipated to be the height of home purchases for Millennials due to how the greatest number of millennials will be 30 years old. Millennials are expected to take up the greatest percentage of home purchases in the coming decade as their housing requirements change.” — Chief economist for Realtor.com, Danielle Hale.