There’s no uncertainty about it: the 2018 lodging market has seen its high points and low points.
The year began with out of these sky-home costs, verifiably low home loan rates and an authoritative high ground for dealers. As of late, however, home value development has vacillated, rates have ascended to their most elevated point in about eight years, and support has begun to move from dealer to purchaser.
Will these patterns proceed? Will lodging background a similarly wild ride in the new year? This is what specialists anticipate will occur in 2019 land advertise:
Home loan rates will keep rising.
“Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow
Millennials will keep buying homes — despite those rising rates.
“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American
“Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.” — Danielle Hale, chief economist for Realtor.com
The report, a joint project of ULI and PricewaterhouseCoopers researchers unveiled during the group’s fall meeting in Boston, considered the responses of more than 750 real estate professionals in creating a high-level overview of the trends it believes will impact the real estate world. While the report expects an overall economic slowdown next year, emerging trends and markets in flux that could provide new opportunities.
Here are the broad trends and innovations expected to shape the real estate industry in 2019.
The year began with out of these sky-home costs, …