We’re More Than Halfway Done With 2019 – What are the Housing Trends?
Before the start of the new year, it’s important for real estate agents to reflect on what has happened the previous year, and what’s likely to happen in the upcoming year. But, a lot can happen in twelve months, and sometimes, it’s much easier and clear to look at trends in the housing market on a quarterly basis, or every six months, as opposed to a year.
Now that we are halfway through 2019, it’s a good idea to take a look at what’s going on.
Reflecting on the First-Half of 2019
Going into 2019, there was a lot of chatter about the state of the housing market. On one hand, many experts felt that we were on the verge of – or in the midst of – a huge housing bubble, and ultimately, a recession. This was especially true on the West Coast of the United States. With an unpredictable administration in the White House, new tax laws, and other changes, it was hard for anyone to see where things were headed, and the industry was quite chaotic.
Zillow Homes was all the rage for a while, and some agents worried about how this type of technology would impact their jobs. Others felt technology only helped them to improve their own work as an agent, while others were merely curious about how things like cryptocurrency and blockchain would play a role in real estate transactions.
And, despite the concern, millennials were still planning on buying homes, though with different demands than the previous generation, and, of course, with a different budget. This could only lead to prices hopefully decreasing in metropolitan areas as people continued to move out to the suburbs. With more people working online, a short commute started being less of a priority to people, along with a decrease in the need to have a car.
Where the Market Stands Now
Now that we are halfway through the year, we can draw some safe conclusions. The housing market, while certainly having suffered greatly in 2018, has finally leveled out to some extent. People are still buying homes, and overall, the economy seems to be doing well (in some places). Prices have actually started to stabilize in extremely expensive cities, and things are looking okay. Though, there’s no question now that in many cities around the United States, we are definitely in a sellers’ market on the rise.
Trends for the Second-Half of 2019
Again, there’s no saying for sure what could happen in six month’s time. As much as experts can look at the data and make assessments about the near future, it’s necessary that real estate agents always stay on the ball and strike while the iron is hot. As Poor Richard said, “Work while it is called today, for you know not how much you may be hindered tomorrow.”
That being said, it never hurts to have some insight. According to Forbes, some trends we might see in the second half of 2019 are:
- First-time buyers – primarily millennials – are not phased by negative news or high numbers. While there are plenty of young people living “unconventional” lives, there are still many people that are getting married, buying homes, and starting their families.
- Part of the reason this might be true is because mortgage rates are still at an all-time low, allowing more and more people to buy a home as they take advantage of this fact, regardless of how high home prices and the cost of living may be
- Inventory is going up, but not by much. Despite all of this, there isn’t too much competition for homes, so bid wars aren’t going to be so common.
- Home prices may have dropped at the beginning of this year, but it likely won’t stay that way. Prices will continue to rise.
- It’s going to be harder and harder to generalize the housing market on a nation-wide basis, as more and more cities are becoming distinguished from one another.
What do you think will happen in the second half of this year? Let us know in the comments below!