Buying and selling a home is a lot like that classic Clash song “Should I Stay or Should I Go?” There are many factors to consider when trying to determine whether this is the right time in your life to sell your current house, move out of the area, buy a new home, or just stay put. Or should you just burn it all down, collect the insurance money, buy a camper van, and travel the country like a hermit?* (*This is illegal. Don’t do this.)
Looking ahead to 2019, you’ll find that there is a little good news for buyers and a little good news for sellers, and then some average news, and then maybe a little bad news for everyone. It’s a cornucopia of real estate news and housing forecasts for everyone!
1. If You’re A Home Buyer
The good news for buyers is that if you’re going to buy a home in 2019, chances are that there will be less competition for you. You’ll have less of a chance of finding that beautiful house of your dreams that your husband loves and your kid loves and your dog loves and in the thirty seconds that it takes you to double-check your pre-approval letter from the bank that you dutifully procured before searching for a home, someone swoops in and buys the house out from under you with cash and gold doubloons. This will give you a bit more breathing room as a buyer to weigh your options and choose a home that’s perfect for you, so that’s worth a bit of a smile.
The supply of homes will be increasing, and demand will be slightly decreasing, giving you, the buyer, a small advantage. This is only true IF (of course there’s an IF) you’re looking for a house in the mid- to high-end range of the market. Entry-level buyers are going to find that new homes might be priced out of their budget, and with mortgage rates likely reaching 5.5% by the end of the year, all buyers will be looking at their budgets closely to make the right choice before prices increase further.
2. If You’re Selling Your Home
Sellers, count your lucky stars (If you can see them. Here in Ocala, it’s crystal clear and we can count all the stars!) 2019 should remain a seller’s market, with prices expected to increase by 2.2% nationally. Although you may have less bidders for the property (or properties if you’re one of the wise ones who invests in real estate) you have for sale, and you will likely have to keep home prices at or around median, you should see good opportunities for selling your home. Just don’t be too afraid of offering incentives and reducing the price as needed - if you can react to your local real estate market appropriately, you should still be able to realize the benefits easily. This is especially true if you have an actual Realtor working with you.
What’s the bad news for sellers? Well, mostly that you won’t be able to name your price and then laugh maniacally as families throw themselves at you Mad Max style to place a bid. It’s going to be a softer market than 2018, so there will be a little more equality between buyers and sellers, but you’ll still have plenty of room for profits and maybe even the occasional maniacal chuckle (but just a quiet one). But be nice - the millennials that you make fun of all the time with those memes are the ones who buy more homes than baby boomers and generation Xers!
3. The Wild Card
There is some unpredictability in predicting the 2019 real estate market due to the new tax plan as taxpayers pay their taxes in April. Or burn their identity to the ground and drive around in a camper van living like a hermit.** (**This is illegal. Don’t do this.) With the current confusion as to who will be affected and how that effect will ripple through the economy and real estate market, you might see that renters will keep renting thanks to the benefits instead of making the choice to buy their first home. Since the new plan removes many of the incentives to home ownership that existed prior, you could see fewer buyers entering the market, dropping sales nationally on a minor level. Or an asteroid could hit the Earth. Who knows? Only time will tell.
Conclusion and TL; DR
If you didn’t want to read all of that, but you still want the benefit of the knowledge, here’s a quick summary for you:
- If you’re buying real estate, mid- to high-end priced homes will offer you less competition and a higher mortgage rate while low priced inventory will be sparser.
- If you’re selling real estate, you’ll still benefit, even if you have to offer incentives or keep your price close to median prices.
- All of these predictions are just educated guesses, and if an asteroid comes at us, we’re all moving to Mars anyway.
Have more questions? Want to get started on buying or selling your home today? Meridian Realty Group is here for all of your real estate needs. Contact us today!