Over the past few years, the housing market has seen substantial growth. This was brought on by a variety of different factors. Moving into 2019, housing market trends are changing. With rising mortgage rates, home prices, and new tax laws, home buyers seem to be a bit more careful than in previous years. That being said, many markets in the United States are seeing no signs of slowing down. What is driving the 2019 housing trends? Let’s take a look.
Slowing Down but Not Stalling
In specific markets, the path to homeownership is may get pricier this year. Mortgage rates, which saw a nice growth last year, will continue on that path in 2019. This may start pushing some homebuyers out of the market. That being said, here will always be buyers and sellers who need houses. At the end of 2018, the market was balanced out by low mortgage rates. Even if they increase in early 2019, they have the rest of the year to level based on supply and demand.
If you are in a large metro area like Los Angeles, Denver, or Seattle, you may have seen substantial growth. These areas can expect to be hit the hardest during this slowdown. Markets like Pueblo, Colorado or throughout the state of Florida are seeing continuous growth. These areas should not be heavily hit. This is even with stock market changes, government shutdowns and lack of confidence within some financial sectors.
Increases in Mortgage Rates
With many real estate companies releasing their predictions, many are coming to the same conclusion. Rising mortgage rates will take out the affordability that the market has been enjoying for most home buyers. Redfin is forecasting a rise of 5.5 percent in 2019 for a 30-year fixed mortgage rate. On the other hand, Zillow is predicting an increase of 5.8 percent. These would be the highest the rates have been seen since the last recession. This increase combined with an already constrained inventory will make this year challenging for both buyers and sellers.
They are also adding more pressure on buyers to lock in a good rate and close a deal before mortgage rates increase again. If a buyer has good credit, and can get a fixed rate mortgage buying would be the safe choice.
Another factor coming into play is that many homeowners are in what is called rate-lock mortgages. With rate-lock homeowners were able to secure historically low mortgage rates. As these rates increase this can make some hesitant to sell their homes. These homeowners understand that once they go to sell their homes and purchase a new one, they will lose those lower rates and have to get a new mortgage at a higher one. This seems to be a growing trend, leading to a slow start to the market in 2019.
Upgrades Still Equal Added Value
Over the last few years, doing upgrades to your home would mean increased value. That is still the case. Depending on the market, updates of kitchens, bathrooms an even exteriors pay off. For those that have a less than desirable home, or one that needs a fair amount of work, check with a real estate professional on what to renovate first. The good news is that companies like I Buy Pueblo Houses offer fair buying prices with little to no work done to a property. They can help those needing to downsize, or anyone who wants to buy or sell.
Even small improvements like painting, landscaping, floor upgrades, and switching out fixtures and lighting, you can add value to your home.
Housing Shortage
If the housing market slows, this can also slow inventory. Meaning that fewer homeowners will put their homes on the market based on market-fears.
Normally, the agent and buyer or seller make their decisions on entering the market. This is often independent of the source of demand. However, in the housing market, these two sources are one and the same. In order to get a new home, one normally needs to sell their current home and find one you like better. So, no matter what market slows occur the market is controlled by buyers and sellers.
That being said, as long as there is movement, the housing marketing will continue to exist. Additionally, mortgage rates, loans and the economic slumps ebb and flow. If the beginning of 2019 is downtrending, the rest of the year may uptrend.
There is one silver lining for sellers if the number of homes for sale becomes less. If buyers are looking and there is a home shortage a a bidding war could come into play which in turn makes it a sellers market.
That being said, if there is an inflow of homes for sale but no buyers sellers may have to start dropping their prices. Or, take their house off the market until conditions change.
Housing companies like I Buy Pueblo Houses can help in these situations. Homes that normally will not sell or fall into the bidding war can benefit from this buying service. I Buy Pueblo Houses can also can also help to find both buyers and sellers to continue to feed the real estate market.
Cash For Houses
There are some situations where the housing market may not be working out in your favor. You may have tried to sell your house without luck. Maybe you and your agent are not the right fit. Or, there may be financial barriers keeping you from selling as quickly as you’d like to. If you are in the Pueblo, Colorado market contact I Buy Pueblo Houses. You may need a home buying company that will give you cash for your home in any condition. We buy houses and have cash, so you can sell your Pueblo house fast by having us purchase your home.