Happy New Year!
As we kick off 2019, we thought it was a great time to reflect a bit on the 2018 real estate market and look forward at 2019 predictions. The market in 2018 was consistently defined by lack of inventory across the country, and particularly here in the DMV. Will that low inventory trend continue into 2019? Experts are saying yes, but that the trend won’t be quite so severe. Here are a few more of the real estate trends that our team at Long & Foster expects to occur in 2019:
- Inventory will increase a little, but still not enough to meet demand. Inventory will expand this year, but primarily in luxury housing. While demand is strong for entry-level homes, there won’t be much more housing available in that segment.
- Mortgage rates are likely to rise. The Mortgage Bankers Association predicts that mortgage rates will reach 5.1% by the end of 2019. While that’s higher than the rock-bottom rates of the past few years, keep it in perspective – rates are still historically low.
- Home values will rise, but at a slower pace. The National Association of Realtors predicts that prices will rise about 3% in 2019 over 2018 – a solid increase but not at the rampant pace of previous years.
- Investors will benefit from continued healthy returns. Real estate brings steady returns, and as investors look to diversify their portfolios, real estate will rise to the spotlight with attractive mortgage rates and high housing demand.
What these trends mean for you
If you’re planning on buying or selling a home in 2019, it’s important to put these trends into perspective and realize that the unique characteristics of your local market may not match these overriding predictions. 2019 looks to remain great for sellers in the DC area, but we’re also already seeing signs of a slightly cooler market, which will help buyers.
Working with real estate professionals like us at The Hersh Group, with our expert local market and industry knowledge, will help you reach your real estate goals in 2019. Contact us today to get started on your journey home. Remember, we’re never too busy for you or your referrals.
Best wishes for a happy and prosperous new year!