It’s the last month of year 2018 and it is time to list down new plans in an attempt to bring you closer to achieve your goals and dreams. If one of your goals this coming 2019 is to buy or sell your home, then this article is for you.
Here are 3 takeaways for to watch out for:
1. There will be an increase in homes for sale, especially Luxury homes
We have been seeing a lot lately a very limited number of homes out in the market for many years now. Yes, there are homes available but not enough to keep up just like with the demand for buyers looking for a home in MA. The number of homes that were for sale actually decreased so much that the inventory was recorded at its lowest last winter. This year though has improved a little (less than 7% increase) and we are hoping that it continues to increase.
It may be good news for our potential buyers this 2019 but this will be a challenge for sellers. An increase in the number of homes for sale in MA means more competition.
On the other hand, higher markets will be different this coming year. The increase in market will come from listings of luxury properties.
One of the expected increase of luxury homes that will add up in the inventory will be in the metro areas of Worcester, MA and Boston, MA. Those said cities including nearby towns are in for a double-digit increase in inventory in 2019.
2. Getting a home would still be tough
It’s a fact that it’s been convenient for sellers for the past few years but will 2019 change that and be in the buyer’s favor this time?
Buyers this year will have an easier access to owning a home because more options will be given however financially it will be more difficult because of the increase of mortgage rates.
Prediction is that from 5% mortgage rates, it will increase up to 5.5% by the end of next year. If we do the math, that’s 8% increase on the monthly mortgage payments.
3. Millenials would still be the top buyers
Millenials seem to dominate the home-buying market a few years ago but now if you look at the generation’s percentage in the market, millenials accounts to 45% versus 17% of baby boomers and 37% of Gen Xers.
For first time-buyers it would be difficult at first but older upgrading buyers will benefit more because of the equity and increased choices.
Whether they are starting a career or older that just started a family, most of the people will be more conscious of the price because most of us are still carrying student debt and want to spend more on experiences such as travelling and because of that, it affects the portion of savings for a down payment or monthly mortgage payments.
This generation is more on maintaining a lifestyle but still sees the importance of owning a home.
In what generation do you belong? Leave below your comments about the Real Estate forecast this 2019.