While it is expected that this year is still going to be challenging for buyers, there is also good news for prospective buyers in 2019. Builders are constructing more entry-level homes, lenders are gradually making it easier to qualify for a loan, and there are a variety of programs available for first-time buyers. That said, here are five real estate trends anticipated this year:
Millennials still expected to dominate home buying
Although, the market continues to be tough for first-time buyers, millennials still dominate the home buyer market. A few years ago, millennials were just entering the market, but now they are one of the largest generational groups of home buyers, accounting for approximately 45 percent of mortgages. According to Ali Wolf, director of economic research at Meyers Research, millennials also are more price-conscious than any other generation.
More homes for sale
While the inventory of homes for sale has been tight these past few years, signs indicate that inventory is finally starting to recover. It is expected that more homes will be hitting the market, but the inventory growth will be slow and steady, and the rate of growth will vary per geographical area.
Mortgage rates will continue to rise
While 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, rates will continue to rise. Therefore, if you are looking to purchase a home, be sure and partner with a qualified mortgage professional to ensure you get the best rate possible.
A good time to sell
As of right now, the real estate climate is still ripe for sellers. As more inventory appears on the market, sellers will need to be mindful of their increasing competition and shouldn’t always expect to name their price and get it in full. Above-median priced sellers may find it longer to sell and may have to offer incentives. This issue is going to vary per market and as long as inventory remains limited in any given community, sellers who price their home competitively can still walk away with a decent profit.
Expanded searches by buyers
It is expected that buyers will expand their search outside the more popular cities and neighborhoods, in hopes of finding a gem of a house that better fits their budget. Buyers are encouraged to work with experienced real estate professionals who are well-informed about quality communities nearby that offer alternative housing options.
For homeowner information or to find a licensed real estate professional, contact the Sierra Nevada Realtors at 775-885-7200 or www.sierranevadarealtors.org. Sierra Nevada Realtors is the voice of real estate in Carson City and the surrounding areas. They are committed to building better communities throughout the region, and participating in the political process to protect the industry as well as private property rights.
Leslie Cain is president of the Sierra Nevada Realtors and a Realtor with RE/MAX Realty Affiliates in Carson City. Leslie has been active in the real estate industry for nearly 14 years and is very passionate about the Northern Nevada community. She holds several certifications including Certified Residential Specialist, Accredited Buyer’s Representative and Senior’s Real Estate Specialist. Cain can be reached at email@example.com or 775-781-1386.