Housing Market Outlook for 2019

Whether or not you’re looking to buy or sell, everyone is interested in the housing market. I can’t tell you how many times I am asked about the market whenever I meet someone and they find out I’m a Realtor. If it’s not the first thing they ask me, which is usually asking how I like my job
(I LOVE IT by the way) it’s definitely the second thing they ask me.

What can we expect to see this year in the real estate market? While I can’t predict the future or say for sure what will happen, I can tell you what experts have predicted for 2019:

• ​We should expect to see a couple more increases in interest rates, though probably small. OMG INTEREST RATES ARE GOING UP NOOOOOO! What does this mean?? Relax, it will be ok! It’s actually the sign of a healthy economy. The economy is predicted to grow by approximately 2.5% this year. In 2018 we grew around 3%, so we are still expected to grow this year just at a slower pace.

Fun fact: in the 80’s when the economy was booming and everyone was making bookoo bucks the interest rates were up to 18%, so I would say we are doing pretty good around 5%.

• Inflation may increase as well - another sign of a healthy economy, people are comfortable spending money. This isn’t something to worry about as long as wages increase to help keep up with inflated prices. Just make sure to watch your spending and maybe put away a little extra in the savings account.

How is does this affect the predictions for the housing market?

• ​More inventory and longer market times. As prices go up sellers are looking to sell but as interest rates go up it may take buyers longer to buy, leading to increased days on market and more homes to choose from. This is a big change (and a good change) from what we saw last year. Speaking from experience, when I showed a buyer a home this year and they fell in love with it I always had to warn them to move quickly before they lost out to someone else. Even if we were the second ones in the door, we were still competing with multiple offers. Hopefully buyers will have some breathing room as we go into 2019.

**Please note that these are predictions and not guarantees. I was able to watch Buffini’s Bold Predictions regarding the 2019 housing market and tie that into my own professional knowledge and experience. If you have any questions please give me a call and I will answer them the best that I can!