The 2019 housing market: What you should know
December 27 2018
There’s good news for hopeful homebuyers. Not only is home price growth finally slowing down, but inventory shortages are letting up across the country, too. Throw in the number of sellers slashing prices in recent months, and buyers have a lot of reasons to be optimistic as we head into the new year.
Is buying a home on your radar for 2019? Here’s what you need to know about the housing market for the coming year:
1. Inventory is growing.
Realtor.com recently announced inventory levels had reached an inflection point, meaning housing shortages might finally be turning around. In September, new listings jumped 8 percent. Add in the growing amount of new construction, and signs indicate improvements for housing inventory in 2019.
2. Price growth is slowing down.
Home prices have been climbing for a while, but since inventory is finally expanding, sellers aren’t able to command sky-high prices like before. That means homes are getting more affordable. In fact, this is the slowest home price growth rate in four years, and Chicago was the only major metro to see a price decline in August.
3. Mortgage rates are rising.
Mortgage rates have been rising, but the good news is we’re still at historic lows. The key is to use a good mortgage calculator to understand how the current rates will impact your monthly payment.
4. Sellers are reducing prices.
Stats show that sellers have been slashing prices lately and that fewer homes are selling above listing price than in years past. If this trend continues, it will mean more affordability for next year’s homebuyers.
Remember, getting prequalified can give you a leg up on the competition no matter what the market looks like. Are you planning to buy a home in 2019? Get in touch with me today to get the prequalification process started!