Whether you’re entering the market as a seller, buyer, or simply a homeowner, it’s always a good idea to keep abreast with the latest market trends and predictions. We’ve curated three predictions that point to 2019 being a great year for a sale.
We’re Not In A Housing Bubble, But The Growth We’re Experiencing Could Level Off
The housing market has been experiencing significant growth over the last three years. Property values have appreciated consistently for 35 months. This data mirrors that of the housing market right before the market crash in 2008. However, the driving force behind property values climbing back then was sub-prime mortgage lending. The practice wouldn’t last as it was unsustainable.
Some experts are predicting another burst for what they’re calling another bubble. Tough legislation and oversight in place make it nearly impossible. But these conditions do look eerily similar.
The great news is that this time around, rising home prices appear to be based on solid economic factors. Unless contractors start massive home-construction projects throughout the country and increase supply dramatically. The shortage in the market will continue to drive prices up.
While many experts say we aren’t in a housing bubble, the market will likely level off in the near future inline with consumer affordability.
Lower Supply Leading To Substantial Growth
Indicators point to the economy settling into period of consistent growth. Unemployment rates have reached record lows, wages appear to be on the rise and millennials have started earning more and are entering the property market. In addition recent tax reforms have given many Americans greater cash supply, which could lead to more buyers entering the market.
However the supply of homes doesn’t seem to match the increased demand for property. Experts predict that this rising demand will be buoyed by a housing shortfall, causing prices to rise this year.
Home Value Set To Rise By 5%
Real estate insiders are pointing to data released by the National Association of REALTORS that the number of homes for sale have dropped for 35 consecutive months. Lower supply, combined with greater demand place sellers in the driver’s seat – and they’re demanding better sale prices. With this information readily available prices are set to rise by as much as 5 percent.