Housing Market Forecast for 2019: What to ExpectWritten by admin on Monday January 14, 2019
Could the housing market see positive changes in 2019? Rising mortgage rates, low housing inventory, and steep prices have all been significant issues recently. While mortgage rates and prices are not expected to improve anytime soon, there are some positive changes expected to come in the new year. In our housing market forecast for 2019 below, we discuss what experts predict to remain the same and what is expected to change, for better or worse.
A (Much Needed) Increase in Inventory
Just a little over a year ago, in the winter of 2017, the housing inventory dropped to a record low. Since then, it has not been able to successfully rise to favorable levels. The low inventory of homes has been a common issue in the housing market for the last couple of years. Thankfully, experts anticipate the rise of home inventory in 2019. This is great news for anyone who has been struggling to find a home that effectively meets all of their needs. It is also a slight relief for people who have felt overwhelmed by the competitiveness of the housing market.
Larger Variety of Homes
If you are a prospective first-time homebuyer, you may want to consider moving into a townhouse or a mobile home. Both of these types of homes are growing in popularity because of their prime location and better affordability.
A mobile home is a manufactured house that costs much less than a regular single-family home, and the volume of shipments is expected to rise from 93,000 to 100,000.
A townhouse is similar to an apartment, in that it is attached to other housing units and exists in a housing community. However, they provide the occupant with more of a “home” feel, since they typically come with multiple floors, a private entrance, and a private garage.
Affordability Will Continue to Be Problematic
Affording a home, unfortunately, will not become any easier in 2019 – according to experts. Home prices aren’t predicted to rise as harshly as they did in 2018; Lawrence Yun from the National Association of Realtors expects modest price growth of 2 to 3 percent. Furthermore, by the end of 2019, mortgage rates are expected to rise to 5.5 percent.
Home Buyers & Sellers May Sit the Year Out
Due to the rising prices, there is a good chance that prospective homebuyers may decide to sit this year out. This will give them an opportunity to save up additional money or to wait for prices to fall. The rising mortgage rates are going to make some homeowners stay put, rather than move out. This way, they will not have to sacrifice their current mortgage rate for a higher one.
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