Thought about your local real estate market lately? If you haven’t you probably should, especially if you’re looking to buy or sell in the near future.
Before you list that house or purchase your new home, here are some key trends in real estate that you need to be on the lookout for.
Mortgage Interest Rates Rise
Although mortgage interest rates have been steady over the past several years, 2019 has shown these rates to be on the rise. For a 15-year mortgage, interest rates are said to increase by 4.4%. And for a 30-year mortgage, that number increases to 5%.
If you’re only seeing this as a bad thing, don’t. This happened because the market’s been booming. With more people willing to borrow money and spend money, the interest rates began to rise.
As a seller, this might mean your house will sit on the market a bit longer as buyers work around these higher interest rates. As a buyer, this rise in interest might seem like a lot, but the rates are still fairly low. Consider a fixed 15-year mortgage loan where you’ll know exactly how much you’ll be paying.
Home Prices Rise Slowly
In the past two years, we’ve seen home prices skyrocket with a 10% increase rate. In 2019, the price of homes is still said to increase, however, it’ll increase much slower than what we witnessed in the previous two years. With that being said, the amount of homes put on the market for sale is said to increase only by 1%.
This slowdown might be caused by the increase in mortgage interest rates. However, there is a significant increase in buyers looking for new-construction homes. Unfortunately, there just aren’t enough of these homes to go around.
And because of this, the new-construction homes that are available are going to be priced at a higher price. For sellers, this means you’ll want to be sure to check out comps in the neighborhood and price your home fairly. For buyers, keep saving and don’t jump into a mortgage loan that you can’t commit to.
A good rule of thumb is to have at least 10% to put down on a 15-year mortgage loan. Wait until you have these funds available before making the purchase.
Millennials Are Taking Over the Market
Millennials are now taking over the real estate market. As the baby boomers become older and begin to downsize, the millennials are becoming older, landing stable careers, and looking to purchase new homes. Most of these millennial buyers are looking for forever homes in middle to upper-class neighborhoods.
For sellers, this means adjusting to what these buyers are looking for which is more home shopping online so advertise accordingly, quality oversize, and a low-maintenance lifestyle. Most millennial buyers are looking to purchase real estate in cities that are busier than others such as Nashville, Tennesee, and Austin, Texas.
For buyers, this means you’ll have a bit of competition when home shopping. Know what you want and be ready to negotiate.
Knowing Your Real Estate Market Trends
Looking to purchase or sell a home soon? Stay up to date with these real estate market trends to ensure you know just what to expect!
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