The only certainty when it comes to the housing and real estate market in 2019 is uncertainty. Expert analysts point to a very complex year, with a multilayer series of overlapping trends that are spearheading 2019. A survey compiled by Urban Land Institute and PricewaterhouseCoopers tapped more than 750 real estate professionals, creating a high-level and perhaps even an accurate assessment of real estate trends in 2019.
For agents, low hanging fruit has been picked. In 2018, the home buying market was highly competitive - before buyers pumped the brakes in the last half of 2018. After years of steady growth and relatively low-interest rate backdropped by an economic recovery from the 2008 housing crisis, demographic shifts and the rise of urban markets may impart a trans-formative moment in the industry in the next year. Financial tech has been supported by capital and is leading to more efficient transactions in 2019.
A refocus on second cities and surrounding suburbs. Researchers note that there is evidence that younger generations that are buying a home are actually interested in single-family units, especially if in walkable and transit-friendly communities. The Census Bureau hints of a second cities suburban shift, with 2.6 million people annually moving from metropolitan areas to more suburban areas between 2016 and 2017.
Millennials will keep buying homes even when mortgage rates rise. Mortgage rates remain lower than they were doing most of the recession — but it is projected that that will shift in 2019, as the 30-year, fixed-rate mortgage reaches an ominous 5.8%. That percentage is threatening; it hadn't been seen since the market crash a decade ago. Interestingly enough, there will be an increase in demand from millennials. Millennials will be at the cusp of their 20s, entering peak homebuying age and spearheading first-time home buyer demand. According to Forbes, millennials will account for 45% of mortgages compared to 17% of boomers, and 37% of those from Generation X.
About Norniella Management Company
Catering to the North Texas residential district, Norniella Management Company offers an effective solution for homeowners and investors looking to rent out their properties to tentative renters. Norniella Management will filter tenants and only present homeowners and investors with high-quality renters, help navigate the rental legalese, as well as offer more efficient rent collection. To learn more about how Norniella Management can be an asset to you, contact us.