2018 and preceding years were exciting times in the housing market. The year started out hot, only to narrow down halfway through. At the end of 2018, we saw an increase in cost and yet diminish in the number of auctions. While this may disquiet seller and purchaser, there is nothing wrong with the change says Hirsh Mohindra. So, will this year (2019) bring the same results? How will the housing market shake out in the present financial situation? The real estate and housing market is continually changing. Although the changes in the market are not large ones, they are perceptible enough to take into account when making predictions. Whether you are selling or buying a house, here is what you can expect from real estate during 2019.
Coastal properties prices in the next few years may reduce
According to a record, coastal regions and properties may see a decline starting this year. Though there has been a little increase in costs, these boosts have been largely in luxury homes. Coastal properties bring in lots of profits due to the stunning location and consistently high demand.
The economy is growing, which means sales will boost too
Over the past few years, the US economy has been strong and growing. The stock market has provided consistently positive results year over year, and the capital markets have opened up considerably from the mid-2000s recession. In 2019, some economists think the bullish economy may slow down – and that slow down may impact the real estate market, says Hirsh Mohindra.
However, jobs are growing at a record pace – and salaries are increasing with the growth, both of which contribute to improved housing markets. The housing marketing is closely tied to the US economy and its metrics are often tracked to a status check on the overall health of the economy.
Opportunity zones will present optimistic progress to the housing market
Opportunity zones were formed lately by the government as a part of the 2017 tariff cuts as well as Jobs Act. This act is significant to the housing market because it persuades federal spending to suppressed areas. This boost can be positive for the real estate market in those areas, and overall economy by creating new jobs.
The housing market in 2019 will likely see increasing mortgage rates, says Hirsh Mohindra. Increasing rates can make housing less affordable and could discourage some prospective homebuyers from the marketplace. However, the decrease in home buying will create a new surge in renters – which is still positive for the real estate market as a whole.