The New Year has arrived and just like every other year there are some real estate trends that you need to familiarize yourself with and understand! While there are many duties and expectations that you clients expect out of you as an agent, knowledge of real estate as a whole is perhaps the most important thing! There are a number of trends that are expected—and already have begun to appear—that you’ll want to share with your clients and prepare for yourself! First and foremost, many experts agree that mortgage rates will continue to rise due to the strong economic growth that the country has seen following the relatively recent recession. In addition, you should already know that millennials continue to become a larger part of the home buying population, and this trend will continue despite the rising mortgage rates! Also, home price growth is expected to slow in 2019, given the inventory of homes that will be available!
Mortgage Rates will Continue to Rise
Due to the recession and subsequent housing crisis that hit the country now just over ten years ago, mortgage rates have been on a steady rise for the past few years as they trend backs towards what they were prior to the housing crisis. As such, you as an agent will have to impart this knowledge to your clients—especially those who may be first time home-buyers! In addition, these rising rates will be mean that certain housing options will become less affordable and thus buyer demand in certain areas will decline. Again, this knowledge is paramount to you as an agent, as it will affect both clients looking to buy and looking to sell a home! It’s also important to note that these rates will most likely continue to rise throughout 2019 and into 2020, so adjust your strategy accordingly!
Millennials will Continue to Buy Homes
As you probably already know, millennials make up the largest portion of home-buyers and that trend will continue into 2020 despite the rising mortgage rates and subsequently less affordable housing. 2019 and 2020 are the years in which the greatest number of millennials will be turning 29 and 30 years old, and these are the peak times in which they’ll be either first time buyers or move-up buyers! You should familiarize yourself with the number of marketing strategies that go into reaching and connecting with millennials, as this will serve you well for both the short and long-term, as millennials will make up the majority of home buyers for as long as the next decade!
The Growth in Home Prices will Continue to Slow
Home prices have gradually slowed over the past few years due to a slow but steady uptick in available homes. 2019 will be no different as the housing market will again see an increase in availability, although this does not mean that homes will become more affordable—especially for first-time buyers. While home inventory is increasing, the greater increases have come in higher income and upscale areas, which means that a smaller percentage of home buyers will find homes to be more affordable. As such, remember that many millennials will be looking to buy their first home and, given the rising mortgage rates and the types of homes that are becoming available, know that they will find it more difficult than in years past. This knowledge is important not only for when you’re helping first time home buyers, but also those looking to sell, as this may alter who your expected buyers may be!