7 Housing Market Trends to Expect in 2019

Planning is key to future business success. As we look forward to the New Year, real estate professionals need to be prepared —studying and anticipating housing market trends in 2019. With the proper information, agents, lenders, and other industry professionals can make strategic plans to tackle potential challenges —and take advantage of opportunities in real estate market trends to grow their business.

2019 Real Estate Market Trends to Keep an Eye On

Here are seven housing market trends to expect in 2019:

1. A Strong Economy Will Stimulate Sales

With high employment, lower taxes, more high-paying jobs, and new career opportunities — the strong economy is expected to stimulate sales. Economists have recognized the continued robust nature of the US financial state, and the consensus seems to point in a positive direction for the 2019 housing market.

2. An Increase in Foreign Investors

When you are looking at US housing market predictions, you absolutely have to include foreign investors in the equation. Interest in real estate investments across the country will continue to grow more attractive to foreign investors such as Canada, China, and Singapore.

3. Financial Technology Transformation

There will be some uncertainty in the 2019 housing market as the industry continues to grapple with financial technology transformation. The rise of fintech (financial technology) is here — and ramping up quickly — making transactions ever more efficient and automated. Be ready, get informed.

4. The Power of Millennials Will Increase

Smaller cities and suburbs are becoming more enticing — bringing millennials by the droves to become new homeowners. Pay attention to housing markets in areas that are walkable or with good transit options. The sale of single-family homes is expected to increase as millennials grabbing those higher-wage jobs choose to move from apartment life to suburbia or in-town bliss.

5. Mortgage Rates Will Continue to Increase

In 2017, the interest rate for a mortgage, on average was around 4%. By mid-2018, it went up to 4.57%. The 2019 US housing market is expected to see 5% by the end of the year. This could put the brakes on in the minds of some potential buyers. But keeping an eye on the additional opportunities will help to temper those challenges — bringing fuel to your business growth pipeline.

6. Venture Capital & Tech Investors Will Have a Booming Impact

US housing market predictions would not be thorough if venture capital and tech investors were not placed in the mix. It’s projected that there will be more than $5 billion in investments at the end of 2018 alone.

What does that mean for 2019? Exciting things are coming in building and construction tech as well as new platforms for selling homes including Bungalow, Knock, and OfferPad (something traditional real estate agents should watch closely).

7. Demand for New Rental Units Will Increase

Commercial real estate will definitely be affected by the ongoing affordable housing issue in the U.S. Real estate market trends reflect the need as 12 million Americans spend more than half of their earnings on rent. The rate of new construction should react, as long as adequate labor is available, and commercial real estate construction will keep moving full steam ahead.

Stay Ahead of the Game

From the power of millennials to the impact of technology, the 2019 housing market should be fascinating, to say the least. Staying informed as events unfold and likely transformations (and potential disruptions) could occur.

Bay National Title Company is dedicated to serving the interests of real estate professionals, lenders, home buyers, and home sellers. Contact us for more information about our full platform of title services.