The economy is in the news a lot—stocks rising and falling, new tariffs appearing nearly every day, the Fed raising or decreasing interest rates… The economy is always on the move. And with it, the real estate market is in a constant state of flux, though it is possible to make some educated predictions for the future. So… what’s in store for the market in 2019 anyway?
Here’s what’s happening in the real estate market… and what it means for your home.
Interest Rates are Low… But Will Rise
Interest rates play a huge role in the state of the real estate market. Now, to clarify, we’re talking about mortgage interest rates, not the interest rates set by the Fed, though the Fed’s rates (and the overall state of the economy) typically play an important role in determining mortgage rates.
Surprisingly, the first half of 2019 has seen low interest rates—which is great for both buyers and sellers. However, those rates aren’t expected to last. For homeowners and home sellers, this might mean waiting a little longer for the right buyer to come around, since buyers will be paying a bit more for the same price tag, thanks to higher interest rates.
Home Prices are Also Rising, But Slowly
Home prices have been steadily climbing since 2017. While this might seem like great news for homeowners and home sellers (you’re home’s worth more than it was last year!), it can also mean a longer wait to get your home to the right buyer. Sure, you’re likely to be claiming a nice profit in the sale, but just be prepared to be a little more patient to see it done.
Most Home Buyers are Millennials
The infamous millennial generation is finally ready to settle down and start buying! They’ve grown up, gotten jobs, found communities they’re ready to call home for a long time… and now they’re ready to make a smart financial investment. If you’re thinking of selling a home, there are a few things to keep in mind, considering that most of your potential buyers will be of this younger generation.
First of all, millennials are internet shoppers. That means high-quality photos and a strong online presence are a necessity if you want to get your home seen by the most buyers. Next, it’s important to keep in mind what’s important to millennial buyers. They tend to be attracted to modern features, like energy-efficient appliances or Smart technology.
Location is also crucial to many buyers, who want to be able to easily reach entertainment, work, and shopping. While you can’t change your location, you CAN highlight some of your home’s best nearby amenities.
The Overall Economy and Market Look Strong
Overall, the economy is strong—lots of jobs, higher average incomes, more consumers with more disposable income. And the housing market is strong, too—more money to spend means more people looking to spend it on homes. As a homeowner, you can expect your home value to keep climbing. And as a home seller, well, you’ll likely be pocketing a nice chunk of change when you accept an offer on your home.