Today’s Real Estate Trends Will Help You Predict Tomorrow’s Real Estate Market

Desireé Duffy  |

Image Source: Pixabay

What’s in store for the Real Estate market in 2019? Rising interest rates and the slow growth of home prices have many people nervous.Add to that talk of a recession and you may even feel paralyzed to act.

It doesn’t matter where you live, the market is clearly shifting and it’s best to be prepared… or at least aware.You can literally be looking at the real estate market in Vancouver or in Connecticut. So what should you do? In general, when people are frightened it’s because they are faced with something they don’t understand. The answer is to study the market’s tendencies and over time, get comfortable with its fluctuations.

Here are a few trends to be aware of in the current Real Estate market that might help you predict what will happen over the next 12 months.

There is a Significant Rise in New Construction

A side effect of buyers feeling like they’re being priced out of the market is that there are turning to new construction to solve the problem.In fact, the projections for 2019 say that new developments will increase by 8%.

First the good news, demand is high and builders are more than willing to take the money, develop property and employ thousands. The bad news, there just isn’t enough land to meet the need and the labor pool is limited.

Home Prices are Still Rising, but Slowly

In 2017 and 2018 the housing market was on a tear with increasing home values as much as 10%, but 2019 is not seeing a similar boom.Is this reason enough to panic? No, but it’s something to watch.Some say, it’s the inevitable slow down. As a result though, the number of homes for sale is staying constant at around 1%.

As you may guess, many experts attribute the slowdown to the uncertainty of the current economy.In truth, it’s prudent to keep a watchful eye on the market as you assess your real estate options. Some professionals are even advising buyers to do their homework before buying a home. This means extensively analyzing their income and budget so that they can get the most for what they can afford. It also means being prepared to stay in the home for the long haul in case the market drops.

As a seller, this means you have to be patient. Increased home values mean buyers are being priced out of the market. Offers will come, but buyers won't be lining up to outbid each other. Consider pricing your home accordingly.

Interest Rates are on the Rise

Experts have been warning buyers about rising interest rates for quite some time and it’s finally here. The new rates are part of the reason buyers are being priced out of the market and should be taken into account by sellers everywhere.It’s harder to command top dollar for your home when buyers are saddled with a higher monthly payment due to increased interest rates.

Millennials Make Up a Large Part of the Buyers

Why should you care if the majority of buyers are millennials?After all, money is money right? Well, millennial buyers tend to be a different breed from other home shoppers.

The fact is, a millennial buyer will start his or her search for a home online.Your real estate broker better be social media or online marketing savvy or you’re in danger of not reaching this important segment of buyers.

First, your photos must be of a very high quality and complimented by engaging videos. Next you should be aware that a millennial will value quality over quantity so don’t be cheap when it comes to renovations. For example, a millennial buyer is more likely to purchase a home with smart technology over a home with more square footage.

Bottom line

Don’t try to control the market, because you can’t. Instead, watch what it’s doing and invest accordingly.Use a discretionary eye and put the work in and you’ll reap the rewards.

DISCLOSURE: Desiree Duffy has no affiliations with this company


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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