In January I sent out my 2019 Real Estate Predictions and advised you to “expect a continued slowdown in the market in 2019 as the market would settle into a new normal… but nothing like the 2006 bubble.” Now that we have passed the mid-year point, I wanted to give you an update. As always, if you ever want to chat about the market or your specific situation, just give me a call. I am always here to help and love talking anything Real Estate.
Where We Started: January 2019
A rise in interest rates in late 2018 pushed us into a Real Estate market shift that had been brewing for a few years. As a result our 2019 market started out weak and struggled to find a balance between supply, demand, & affordability. A significant drop in interest rates ensued in early 2019, bringing with it hopes of a motivated Buyer pool. Although the market did pick up a bit, it was not much.
So Far This Year
For a quick recap of the statistics, look at my Year-over-Year By The Numbers section below. In my professional opinion, 2019 is on its way to being remembered as the year of the Shift. Even with interest rates hitting their lowest level in 16 months, Buyers seem to be stuck in 2nd gear. As a result, homes that in the past would have sold quickly and for multiple offers are sitting on the market and experiencing price drops, as discerning Buyers take their time to ensure they are getting the right value for their money. With prices high and future appreciation not guaranteed, Buyers are less tolerant of busy streets, poorly maintained homes, and lack of updates. So far this year sales are down, interest rates are down, prices are stable, inventory is up, and time on market is up.
Gayle’s Predictions for 2019
The market will continue to lag behind previous years. Even the recent drop in interest rates will not be enough to spur more home sales. Here are a few things to expect:
- Price growth 3-4%
- Buyer demand for value
- Decline in homeownership rates
- Longer market time
- Greater buying power
- Low interest rates
- Limited choices
- Ability to negotiate