It’s hard to believe how far we’ve already made it into 2019. Whether you’ve been keeping up with your resolutions or not, there’s still plenty of time left in the year for us all to pursue our various goals.
If any of your goals happen to do with real estate, I highly encourage you to keep tabs on our ever-changing market. With that in mind, it’s also important to realize that market conditions are like the weather—you can make close predictions about what may be on the horizon, but there’s no way to know for certain what’s ahead.
Having said that, let’s review the forecast that Realtor.com’s economic research team has laid out. There are four main points to take away from this forecast:
1. There will be more homes for sale, especially luxury properties. Inventory has been super tight for years now. Yes, homes have been hitting the market—but not at an adequate pace to keep up with current demand. In fact, national inventory levels reached their lowest point in recorded history last winter. Supply has begun to recover in 2019, and homes in higher price points will be especially abundant.
2. Affordability will remain low. It’s no secret that we’ve been in a seller’s market for the past few years. While buyers are soon to face improved conditions as a result of rising inventory, the matter of affordability will remain a problem moving forward as interest rates continue to climb.
3. Millennials will keep buying. Just a few years ago, millennials were the “new kids on the block” in our marketplace. Now, they make up the largest generational demographic of homebuyers—accounting for 45% of all mortgages.
4. The new tax law is still a wild card. Last year, while the GOP’s proposed tax law was still being batted around Congress, many believed that, if passed, it would discourage buyers from entering the market. Even now that that the bill has been signed, the full impact of this change will remain unclear until tax season is over.
To read Realtor.com’s full report, click here. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.