GET THE UPDATES ON THIS YEAR'S EXPECTED REAL ESTATE FORECAST.
Every coming new year marks a changing tide in the world of Washington, D.C. real estate. The real estate market is an ever-adapting mechanism that can keep us all guessing unless we know about the upcoming trends. Of course, we can’t predict exactly what will happen, but we can get to know the prominent forces that will cause things to go one way or the other.
This is valuable information for buyers and sellers, as they can use this data to better prepare themselves and plan the smartest strategies to move forward. Here’s what the experts are predicting for the 2019 market.
INCREASE IN LUXURY HOME AVAILABILITY
For the past few years, the ratio of supply and demand hasn’t been able to level out. The inventory of homes, especially luxury properties in metro markets, has been dishearteningly low. The winter of 2018 saw the lowest recorded inventory rates in history.
However, this year holds promise for a turnaround. The supply levels are finally anticipated to recover with a 7% national inventory growth rate. Although it’s slow and steady, this is great news for buyers!
The greatest change will be seen in the increased availability of . Keep in mind that most of the inventory growth will be coming from strong economy markets, so we’re expecting to see an abundance of pricier listings emerge in the coming year.
MORTGAGE RATES STILL ON THE RISE
In 2018, mortgage rates were resting at about 5%. This year, many are expecting to see an increase reaching up to 5.5% by the end of 2019.
Because of this, the average home listing’s monthly mortgage payments will be 8% higher this year. This is especially hard on first-time buyers, as they typically borrow the most since they have no equity on their previous house to draw from.
MILLENNIALS AS PRIME HOME BUYERS
Despite the increasing odds against them, millennials are predicted to dominate the home buying scene. Currently the largest generational group of home buyers, millennials make up 45% of national mortgages.
This year, we’ll even see some of them graduating from their starter homes and buying their second house. These move-up buyers will receive the benefits of the market with their standing equity and increased inventory.
Taking it a step further, 2020 is anticipated to be the peak of millennial home buying since the majority of this generation will be turning 30.
TECHNOLOGY IS HERE TO STAY
Technology has been steadily taking control of the real estate industry, and that doesn’t seem to be changing any time soon. With new , websites, and marketing tactics, real estate is taking on a new face. This adaptation is sure to continue changing the way buyers and sellers navigate the market.
From a long term perspective, 2019’s forecast holds promise to begin shaping a healthier market for the future.
For more information about buying and selling, . I would love to help you navigate the world of Washington, D.C. luxury real estate.