21 Jan Housing Trends to Watch for in 2019
Whether you’re looking here at real estate listings in Frederick or surrounding areas of central Maryland, if you plan on being involved in the housing market in 2019 on a personal or professional level, you’ll want to closely monitor everything that is going on in order to make the right moves. Predicting the future is always an inexact science, but there is something to be learned from the general trends that are taking place in the market. In this article, we’ll discuss some of the points to watch for as 2019 unfolds.
Interest Rate Changes?
One of the biggest factors at any given time in the housing market is the prevailing interest rates. When interest rates rise, buying power goes down – and vice versa. Therefore, it’s always important to watch how mortgage rates are trending when you are thinking of making a move. The commonly expected belief has been that interest rates would rise throughout 2019, but that is not guaranteed to occur. If the Federal Reserve does make the decision to raise rates in 2019 it is nearly certain the mortgage rates will follow.
Where Will Inventory Go?
In recent years, the housing inventory has been rather low in most markets. With low inventory, buyers don’t have that many properties to choose from at any given time. The lack of available homes can have a couple of impacts, depending on other market factors. Without much selection, some buyers may just give up and wait for another time when there will be more properties to consider. Or, on the other hand, if there are enough motivated buyers in a market, bidding wars can develop for the few properties that are for sale. It’s hard to say where inventory will go in the coming months, although rising interest rates could work to keep inventory depressed (if the rates do rise).
Continued New Construction
There has been quite a bit of new construction work going on in the housing market in recent months, even though the number of homes being built is still not keeping up with the demand for houses. The hole in the market is in the lower range, making it difficult for some families to afford a purchase. New home construction came to a screeching halt during the last recession, but it continues to rebound in recent years and it seems as though 2019 will see plenty of new residences completed.
In the end, trends in the housing market are interesting and informative to watch, but they don’t guarantee anything about where the market is going to go in the future. Those who are going to be buying or selling a property need to make sure the current market conditions are suitable for the transaction first and foremost. After all, you can only make a decision based on the best available information at the time. Changes in things like interest rates and the economy as a whole can always impact housing in the future, but there is nothing that an individual buyer or seller can do about those factors, anyway.