12 Dec US Housing Market Predictions for 2019
Predicting any market is a significant challenge. To be sure, no one can predict the future of a given market with 100% accuracy, as there is always some degree of uncertainty that comes along with any forecast. With that said, it does help to look ahead at what is generally expected, so you can make decisions and plans based on those expectations.
In this article, we’d like to take a quick look at some of the expectations for the 2019 housing market. Housing is one of the biggest markets in the country, and the health of this market has far-reaching impacts on many other market segments.
A Good Start
A first glance, you will see that the overall economy in the United States is strong at the moment. That strength puts the housing market on good footing, as people have money to buy houses, make their mortgage payments, etc. Also, the strength of the economy is not a new development, as it has been rolling in a positive direction for several years. It is likely that sellers will find plenty of willing buyers to target when putting a property on the market, and those hoping to buy will see plenty of competition.
Modest New Construction
Those hoping to buy a home are able to pick between existing inventory and new construction. The idea of new construction is appealing because the home has never before been lived in, yet there are some downsides here, as well (such as the time it takes to build the house). While there are pockets of active new construction around the country, there are not as many homes being built as the strength of the market would suggest. That means some buyers will find inventory to be lacking in their area, perhaps pushing them towards purchasing an existing home rather than a new build.
Watch the Rates
Mortgage rates are always a big topic of discussion with regard to the housing market. Of course, this is a point which carries obvious importance, as potential homebuyers have less buying power as the rates rise. Mortgage rates have been climbing during 2018, and many analysts expect that trend to continue through 2019. If those predictions hold true and rates are higher in 2019 than in 2018, it’s likely that those elevated rates will work to depress housing prices, at least to a degree.
A Good Time to Sell, Overall
It’s never easy to take in a clear overall picture of the U.S. housing market, as the United States is a huge country made up of many smaller markets. With that said, 2019, in general, would seem like a good time to sell your home. Although rising rates may bring prices down a little – or, at least, cause them to level off – the economy is still strong, meaning there are plenty of willing and capable buyers on the market. Until something significant changes which impacts the economy in a negative manner, housing in the U.S. seems poised to hold strong.