As we usher in the new year with great celebrations and expectations, I want to take this moment to express my heartfelt gratitude to you. Thank you for being a part of my journey. I look forward to building and strengthening our relationship in the new year, as we have in the past so many years!
Wishing you happy holidays and an amazing new year!
2019 Real Estate Forecast: What to Expect
Mortgage rates will continue rising. Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8%.Millennials will keep buying homes — despite those rising rates.
Millennials will keep buying homes — despite those rising rates. Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers.
National rents will rise, but apartment construction could ease renters’ pains. As higher rates limit the number of homes that potential buyers can afford, some would-be buyers will be too financially stretched to buy and will continue renting. As a result, recent (and very slight) drops in rent will reverse and turn positive again. The shift will be muted, however, by continued steady investment in apartment construction, which will prevent rent growth from shooting too far above income growth.
Inventory troubles will ease — not too much, though. In the majority of markets, the number of homes being put on the market or newly constructed has increased slightly, while the pace of sales has slowed slightly, which has helped stop the inventory decline.
For even more information, follow this link!
Don’t Get Caught in The Rental Trap in 2019
Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying – and you wouldn’t be alone!
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!
When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. And it’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years.
When asked why they haven’t purchased a home yet, not having enough saved for a down payment came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!
Bottom Line: If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, please contact me so I can help you on your path to homeownership.
What if I wait a year to buy a home?
National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.
What Does This Mean as a Buyer?
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan. If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
New Listing! 213 S 26th St. Unit 4
Desirable urban condo in prime downtown location! Conveniently located near Midtown Crossing and The Blackstone District. Updated finishes and historic character are blended throughout this spacious unit. Exposed brick, ducts, and newer floor-to-ceiling windows. Exterior building insured by HOA and includes water and parking spot. Furnace/AC services ’18.
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My 2018 Sales: 53 units, $11,275,156 in total sales
None of this would be possible without you. Remember, you can always reach out to me with any questions about the home buying or selling process. Thank you again for a wonderful 2018 and helping set me up for a great 2019 and beyond! I look forward to serving your continued real estate needs and happily welcome any new business you send my way.
Happy New Year!