The Housing Market Predictions for 2019? For many decades, the dream of home ownership has been a flight of fancy, however with the US economy predicted to grow 3 to 5%, and with house construction growing and US wages rising, we’ll see more Americans buying a home. For many happy people, it will be their first home.
Home prices won’t fall, but it should be another good year for investing in the residential real estate or buying homes in most US cities from New York to California to Florida. Astonishingly, only 30% of Californians own their home, not quite the traditional American Dream. The good news, the economy is growing healthy again.
Housing Prices to Climb Further in 2019
Most experts predict a flat housing market or a buyer’s market for 2019 and 2020. Given the lack of housing availability, it might sound crazy to suggest a buyer’s market is on the horizon in Los Angeles, San Diego, or the Bay Area, but look at the stats below and you’ll see things are changing.
With strong growth in home construction, this might make it the best time to buy a house and a good time to sell your home. If mortgage rates grow a little, you should be considering buying in 2018.
For a home buyer, however, it’s a tough decision to buy in 2018/2019 given the geopolitical uncertainty, trade transitions, a 2020 election, current high home prices, rising mortgage rates and higher housing construction costs ahead.
However, with US businesses getting a huge sales to boost in their own country and with fewer imported products, Americans will enjoy low unemployment, higher wages and more access to home financing. It’s all positive and optimistic for a strong housing market and perhaps the best time to buy a house.
Millennials Aim to Buy a Home
More US Millennials, that big demographic group, are in their home buying years, with more funds, hungry for their first purchase and that will ensure you have lots of competition. Millennial demand could make 2019 the best year to sell your home.
When is the Best Time to Buy a House?
Will 2019 be the best time to buy a house or condo? Probably. Housing stock on the market now isn’t so hot now but availability is going to improve in the next few years. Mortgage rates and construction costs will rise but this might not be too painful until 2020 where inflation and financing qualification could hurt prospective buyers.
If the world heads into recession in 2020, that would only ease inflation worries in the US. The US economy will stay solid as more jobs move from China to the US. Overall, home prices aren’t expected to grow much but market crashes are highly unlikely. That should make it a safer purchase for buyers and more difficult for sellers to get the best price possible.
Housing price forecasts depend on availability, construction, job growth, wages, mortgage rates, and consumer confidence. All factors are positive for growth in construction and purchase for the next 5 years. It will be quite a while before demand is satiated.
Overall, the US economic predictions are very positive that means optimism reigns for smart real estate investors and home buyers. Although rising trade tensions and tariffs could hamper global GDP, the effect on the US economy will still be positive. Any reduction in the US international trade deficit and a return of investment funds to the US will make a big impact on housing.
Rising employment, wages, new business startups, reduced corporate tax, and less competition from cheap producers and some protection of American industry will ensure 2019 is another boom year economically. Investment in US business will continue in 2019.
Freddie Mac Forecast Snapshot 2019
|30 Year Fixed Rate Mortgage||4%||4.6%||5.1%|
|Total Home Sales||6,120,000||6,320000||6,440,000|
|Housing Price Growth||7.3%||7%||3.1%|
|Total Loan Originations||$1,865||$1,750||$1,744|
|Real GDP Growth||2.6%||2.7%||2.1%|
|Total Home Sales||6,120,000||6,320,000||6,440,000|
|Chart data courtesy of Freddie Mac and ECONOMIC & HOUSING RESEARCH GROUP|
Is 2019 the Best Time to Sell Your House?
The answer is likely affirmative for now till 2019 to sell. Let go of the past and move forward to a better life before home prices fall. It’s looming opportunity or threat of the years ahead. Election Predictions 2020? A Trump loss in 2020, could bring radical and devastating economic change in the US. There is no going back on Make America Great Again.