What to Expect In Real Estate 2019
2018 was a great year for real estate! Many property owners were able to exchange real estate that they had been holding onto for many years. Additionally, many new first time home buyers entered the market! In fact, according to recent statistics from NAR, millennial home buyers( those aged 37 and younger) made up the largest group of home purchasers.
The second largest group of home buyers was Baby Boomers ( those aged 53-71.) Inventory rose throughout the year an uptick in homes hit the market. However, the demands of the market still outpaced the amount of homes available. Thus, home values in many segments of the market increased in line with the steadily rising demand set forth by purchasers.
This year left many of us wondering, “What is in store for real estate in 2019?” I do not have a crystal ball to help you answer this question. But, I do have experience in the market, and an understanding of the current trends.
- Shifting Values – Market values are shifting. Many segments of the market are showing signs of slowing and yet others are still very strong. Expect to see more sifting values in 2019 as the market responds to rising interest rates and other changes in the market.
- Moving Onward And Outward – One trend that picked up pace in 2018 and is expected to continue in 2019 is the expansion of growth in smaller cities. In the Big Bend, this translates to growth in small towns and rural areas surrounding the capital city.
- Affordable New Construction – With tight inventory, new construction has become an increasingly popular option to home buyers. We fully expect this to continue in 2019. Affordable new construction options will be especially popular with home buyers in 2019.
- Interest Rates Rise – Market experts fully expect interest rates to rise in 2019. This will have a direct effect on buyers entering the real estate market.
- An Uptick In First Time Home Buyers – Buyers will likely have an easier time in most markets in 2019. In 2018, millennial home buyers dominated the market. This number is expected to rise in 2019 as new Millennials increase their incomes and grow their families. Additionally, some home buyers who were previously frustrated by low inventory in 2018 may re-enter the market as inventory rises.