Is 2019 a good time to buy or sell your home? We looked at some forecasts for 2019 to make our predictions for what the housing market will look like this year.
Mortgage Rates Will Remain Low
The Fed raised interest rates four times last year, bringing the average rate for a 30-year mortgage close to 5 percent. But as of January, 30-year mortgage rates have plummeted back down to about 4.5 percent. Despite a few ups and downs, interest rates should remain historically low throughout 2019 — which is good news for buyers and sellers alike.
More Inventory Will Provide Some Relief
As the end of last year approached, the housing market slowed its pace, so we entered 2019 with both a low inventory and lower home sales overall. But as all of us begin to slowly recover from the holidays, so should the housing market. Realtor.com predicts that the national inventory of homes for sale will increase by about 7 percent, with more homes becoming available at the mid- to upper-tier price point, which should cause bidding wars to ease up as buyers face less competition.
Millennials Are Moving Up
Millennials are overtaking other generations as the largest segment of the population, and that goes for homebuyers as well. According to Realtor.com, this age group will account for 45 percent of new mortgages in 2019, as the largest cohort of millennials is about to turn 30. Though first-time homebuyers might struggle with lower inventory, those who are onto their second homes — or have simply built up their savings while living with mom and dad — will find more buying power this year when shopping for homes in higher price ranges.