What Can Home Buyers and Sellers Expect in 2019?
Louisiana Realtors • January 30, 2019
As quickly as 2018 ended, 2019 has arrived. And as with each new year, especially in the world of residential real estate, a lot more than just the calendar is expected to change. These expectations can mean a lot if you are planning to buy or sell a home in the coming months. So, just like you’d check the weather before making outdoor plans on the weekend, let’s look at a few things that are being forecast for the year ahead.
Mortgage Rates Will be on the Rise
While mortgage rates are still below the levels they reached during the recession, they will continue the steady climb we’ve seen over the past two years. However, rates will remain below average in spite of the strong economic environment we’re experiencing. By the end of 2019, 30-year fixed rate mortgages are expected to 5.8%
In Spite of Rising Rates, Home Sales to Millennials Will Increase
Even with mortgage rates on the rise, demand from Millennials will continue to increase. This surge will add to the growth of first-time homebuyers. 45% of home purchases are expected to be from Millennials, compared to 37% from Gen Xers, and 17% from Baby Boomers.
Inventory Will Improve
Compared to 2018 the increased demand from first-time buyers will be met by a slightly higher inventory level in 2019. The number of homes being put on the market and newly constructed homes increasing, combined with a slower pace of sales will improve inventory for home buyers.
Home Price Growth Will Slow
Another benefit for home buyers in 2019 will be a slow down in home price appreciation. This is a result of increasing inventory. Recent years have seen anywhere from a 5-10% increase in home prices. With buyers having more options, coupled with higher interest rates, price growth is expected to drop from 1-3%.
Thinking about buying, selling, or moving in Louisiana? Explore key factors that can help you decide when the time is right.
It’s not unusual for people to enter the homebuying process with a priority list that needs to be whittled down once they see what’s on the market. NAR’s latest consumer guide, “Defining Home Buying Needs vs. Wants,” is a decision-making tool that can help. It’s a simple checklist to help home buyers identify their needs, wants and deal-breakers. Using the form, or something like it, will help buyers remember what’s most important to them as they view and compare homes. There’s even a fillable PDF available for download. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Defining Home Buying Needs vs. Wants NEW: 10 Tips For Unpacking Smartly After A Move UPDATED: Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide for sellers on how to ease the transition for the new owners.
NAR’s latest consumer guide, “10 Tips for Unpacking Smartly After a Move,” was developed to help ease the burden buyers may feel when surrounded by boxes. For your clients on the cusp of a move, the guide suggests establishing a priority unpacking order, wiping down each room before unpacking, discarding boxes quickly, having garbage and donation bags at the ready, and more. Share the new guide along with the companion guide “10 Tips for Packing Smartly for a Move.” As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: 10 Tips For Unpacking Smartly After A Move UPDATED : Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide on identifying homebuying wants vs. needs.
