2018 was a year of ups and downs for the real estate market for sure. The year started with steep home prices and low mortgage rates – a seller’s delight! Will these trends continue? Here’s what the experts are expecting for 2019.
Millennials will continue to be the top home buyers.
Believe it or not, millennials are the largest generational group buying homes right now. Millennials account for 45% of mortgages compared to Gen Xers at 37% and Baby Boomers at 17%. That means if you’re trying to sell your home, you need to know about these potential buyers. Whether they’re buying their first home or upgrading from their starter home, Millennials are well-researched. This tech-savvy group can easily research home prices keep up to date with current listings. Thanks to HGTV and popular home improvement shows, millennials also have an eye for renovation and repairs. They can identify those red flags but aren’t as hesitant to take on home projects as previous generations. Creativity will be an asset for this crew as they are willing to be innovative to stay within their price range.
Buyers will change their strategy.
Mortgage rates and home prices are expected to continue to rise in 2019. Although the window of affordability will shrink for buyers, that doesn’t mean it will be impossible to find a home that fits your needs AND your budget! Homebuyers will simply need to spend more time analyzing deals and understanding what they can expect to find within their budget in this shifting market. All this to say, it is going to be more important than ever to utilize a real estate agent as you are shopping for homes in 2019. There are lots of apps and websites out there that you can use on your own, but a qualified realtor will be able to give you up-to-date and accurate information about the current market.
Home inventory will recover.
Sellers may have benefitted from the lack of supply this past year, but a greater number of homes will be for sale in 2019. The number of homes for sale has not been able to keep up with the market’s demand. In fact, home inventory hit a record low last winter creating the largest imbalance of supply and demand in real estate history. The rise of home inventory is great news for buyers as their will be more to choose from; However, the competition to sell may become tighter. If sellers have set their expectations based on the experiences of friends or neighbors who sold a home in 2017 or 2018, they may need to adjust those expectations. Don’t be discouraged. With home prices on the rise, selling your home in 2019 could be well worth the wait!
There you have it – new trends for the new year! Check out our other blog posts for more tips, tricks, and trends!
As you prepare to navigate the real estate market in 2019, let Missouri Home, Farm & Land, LLC be your guide. We put clients first – buyers and sellers alike. To learn more, call us at 417-777-3300 or reach out on our website: https://missourihomefarmland.com.