In every industry, predicting trends for the new year and preparing for changes in consumer behavior is the key to staying ahead.
Especially in real estate, being able to look ahead is a crucial diagnostic tool for both agents and homebuyers looking to plan for the new year. With a saturated market and high competition, homebuyers will increase their chances of accommodating their needs the faster they understand and adapt their plans to new year trends.
Here are three concrete real estate trends expected this year:
Inventory on the Rise
As many real estate professionals already know, the housing market has not found much success in keeping up with homebuyer demand. In fact, the lowest recorded housing inventory occurred this time last year.
In 2019, things are beginning to pick up, especially as more people put their homes on the market. With more homes for sale, it’s predicted that the nation will see 7% inventory growth over the next 12 calendar months. This is no drastic change, but it’s certainly not one to scoff at following a down year.
For homebuyers, this is terrific news; for sellers, however, it’s no reason to celebrate. With increased home inventory across the board, sellers will face stiffer market competition. They’ll be forced to rethink their listings, price points, and sales strategy altogether in order to get their homes sold.
Affordability Still an Issue
Even with a predicted increase in housing inventory, homes will not be any more affordable than they have been in years past. Once again, mortgage rates and general home prices are expected to increase in 2019. By the end of the year, mortgage rates could spike an entire half percentage point, meaning an average 8% mortgage payment increase on most homes.
Millennials Remain on top
Older millennials (those in their 30s) are more and more settling down and purchasing homes. While this sub-generation assumed the stigma of one that simply doesn’t buy homes like its preceding generation, there is good reason for it—student loans and a fierce housing market caused older millennials to get off to a bit of a “rocky start” in terms of homebuying. In 2019, however, millennials compose 45% of homebuyers and are now the largest homebuyer group in the United States. In 2019, this trend is expected to continue.
A Continuing Trend
Regardless of predictions and trends in 2019, Property Debt Research remains a highly trusted source for Municipal Lien Searches in and beyond Florida.
With over 20 years in the industry, PDR brings cutting-edge technology, the fastest turnaround times in the industry, and a knowledge base of municipal search nuances that comes from decades of experience in title support.
Get in touch with a PDR consultant today.