Want to buy or sell your house next year? Well, get ready for a rocky road ahead.
According to new data from Realtor.com's 2019 housing forecast, rising prices and prices in the coming year make it harder to buy or sell homes.
Real Estate's website found mortgage rates expected to reach 5.5 percent by the end of 2019, and monthly mortgage payments, which are expected to increase by 8 percent, will make home ownership less likely – notably a one-thousandth – than ever before.
Realtor.com Chief Economist Danielle Hale says that these increases can force buyers to cut the number of homes they are looking for and may exclude some potential buyers from the market.
With regard to vendors, although the market will remain a "vendor market", most of them will have to take into account these increases and do not have to wait for "to name their price and to achieve it fully", which is a significant change from recent years.
In addition, vendors whose average price is lower than average prices may assume that the sales time will be longer and will require a stimulus, such as price reductions.
"With fewer demands on the market, there will be fewer races of war and more offers. However, given that stocks are expected to remain limited in most markets, vendors who are trying to compete can still get a good return, but not the rise in prices seen in previous years. years, "says the report.
Hale says her biggest advice to home buyers who want to buy next year is a wish list that helps make a more targeted search.
"This year's competition is most likely to happen when it comes to finding a home that meets your budget criteria, not from other buyers," she says in FOX Business, adding that using online tools such as home search features can help you search for home searches and help you get pre-approved mortgages.
Another factor that continues to be a major housing map for the housing market next year is the new tax plan. Most tenants can benefit from it because they will have lower rates and a higher standard deduction, which should have lower tax bills. But for homeowners this is a mixed bag. Realtor.com says some will benefit from lower rates and higher standard deductions, but many others may find limited detailed deductions and personal exemptions that could mean a higher tax bill.
"Despite the fact that in 2017 the volume of housing sales was the highest that they had for more than a decade, the sales volume started to decrease immediately after the tax plan in 2018. Though many factors affect home sales, it may happen that without the stimulation of households some tenants delay buying, "adds this report.
Here are the key findings from Realtor.com's 2019 housing forecast:
• The initial price increase will continue to slow down, with a projected increase of 2.2 percent
• Inventory growth will remain moderate with less than 7 percent increase
• High-priced markets will have a buck trend with two-digit inventory growth
• Millennials account for 45 percent mortgages in 2019 vs. 17 percent boomers
• A new tax plan will be good for tenants who are confused with homeowners