With 2019 arriving in less than a month, let’s take a look at the housing forecast. According to Realtor.com, home prices will only be increasing 2.2% nationally, with a 6.8% increase in Denver. Mortgage rates will play a huge role in 2019, with an expected increase to 5.5% by the end of next year.
The 2.2% increase in home prices nationally could be an indicator of a leveling-out market. However, this in combination of the climbing mortgage rates and less than a 7% increase in overall inventory points to 2019 remaining a seller’s market.
While real estate is predicted to become more costly to buy, for buyers capable of paying these prices, there will be a sense of relief. With a slower moving market, buyers can take more time to choose from a wider inventory of homes. For sellers, 2019 will remain a favorable market as well, but it is expected to behave differently than years past. Days on market may increase and the number of offers may decrease with overall sales expected to decrease by 2%. There are still great profits to be made for sellers. However, according to Danielle Hale, Realtor.com’s Chief Economist, “Days on Market will likely increase. If sellers want to move their homes quickly, they need to make sure it’s priced to sell so it won’t languish on the market.”
Overall 2019 is looking to be a slower seller’s market with luxury homes becoming the peak of buying interest. You can expect luxury homes to dominate the market with double-digit inventory gains. As Realtor.com is predicting “the majority of the inventory gains have been in upscale homes in high-growth markets, which suggests higher prices are incentivizing sellers”