Column - January 2019
Analyzing the 2019 Housing Market
Realtor.com has released their 2019 Market Forecast. Though it is expected that housing inventories will continue to increase in 2019 – don’t expect a buyer’s market for many years to come. Rising interest rates, will make it more costly to buy a home in 2019, especially for entry level home buyers.
Metro Area 2019 Sales Growth % 2019 Price Growth %
San Antonio-New Braunfels, Texas -1.0 2.1
Expectations for the San Antonio Metro area is as follows: less overall sales, increased inventories (especially in the number of luxury listings) and slightly rising prices.
How does this effect buyers? Both interest rates and prices will increase, so those buyers who are able to continue to be serious about buying a home will have less competition. They will still have to decide between wants, needs, and budget. Home inventory increases are generally good for buyers, but those inventory increases will come in the mid-to-high price ranges, not entry-level homes making it especially hard for first-time buyers.
How does this effect sellers? Though it is expected to still be a seller’s market, sellers need to realize that they will have more competition – so don’t expect it to continue like in years past. Don’t expect to get full price, multiple offers, or fast, “as-is” sales; and depending on the price level of a seller’s home, price cuts and selling incentives such as contribution towards closing costs may be the new norm. Even with increased inventories, sellers who price competitively, and make necessary repairs, can still make a decent profit.
Call me to help you figure out what You need to do to buy or sell a home in 2019.