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Houston Housing 2019 Forecast: What It Means For You

Published January 17th, 2019 by Silmonadmin


The current federal government shutdown is the longest in U.S. history. The Federal Reserve is promising to raise interest rates in 2019. How will all these factors affect the housing market this year? How can you ensure you’re doing everything you need to do to make your money work for you? 

If you’re planning to buy or sell a house in Houston in 2019, here are five real estate trends you can expect to affect you. 

Rising Mortgage Rates

In 2019, Texas can expect an economic slowdown. The psychological impacts of the tumultuous U.S. political climate will create a ripple effect in all markets. Also, there is talk of the ten-year yield, which dictates mortgage rates will increase this year. Hence, we can expect mortgage rates to follow. 

What does this mean for you as a buyer? Increased mortgage rates mean higher monthly payments. You can do one of two things: come to the closing table with more money to compensate for the increase in mortgage rates, or buy a less-expensive house so your monthly payments are lower. 

What does this mean for you as a seller? You will have fewer buyers competing to buy your home, as buyers will wait or be knocked out of your price range due to the increase in mortgage rates. Pricing your home accordingly will be essential this year if you decide to sell. You might also want to look into contributing to the buyer’s cost at the closing table to make your home more attractive to buyers. Want to know how rising interest will affect you when selling your home then head here.

Most Buyers Will Be Millennials 

Learn the tricks to have buyers vying to buy your home NOW!

As millennials get older, they will be considering home ownership, despite rising interest rates. Expect older millennials looking to move up to be the majority of home buyers in 2019.

What does this mean for you as a buyer? If you are a first-time home buyer in 2019, it will be more difficult. If you’re moving up – especially in the luxury market – interest rates will also affect your monthly payments, but you will be compensated by having more selection because of the increased inventory in this market.

What does this mean for you as a seller? Bidding wars are not likely to happen in 2019. It will be essential to have a solid marketing plan in place to attract the lower number of buyers available. High-end homes will have to offer a more compelling story if they are to sell, especially since most of the potential buyers will be moving-up millennials. You will need to ensure skillful staging and stellar photography are a part of your selling strategy to attract these type of buyers.

Inventory Will Increase, Especially In The Luxury Market

Inventory has been increasing in Houston. According to forecasts, it will continue to do so, but not at the previous year’s rate. This does not mean we will be entering a buyer’s market yet. Higher interest rates will slow the demand for homes.

What does this mean for you as a buyer? Despite the increase in inventory, buying a home will still be more difficult in 2019. The good news is you can afford to be pickier about the homes you can afford, because you will be competing with fewer buyers along with higher inventory, especially in the luxury market.

What does this mean for you as a seller? Since we do not yet have a buyer’s market, price your home competitively to make up for the lower number of buyers. The good news is sellers can expect to make a decent profit, just not as much as in previous years.

Houston Sales Will Increase, Just Not Like Last Year

According to HAR’s numbers for last year, sales increased by 3.8%. This year, Houston can expect 4.2% growth. There will be an increase in sales, but nothing like what we saw last year. 

What does this mean for you as a buyer? Rising interest rates will likely be a driver of decreased sales in Houston. Buyers in the entry-level market in Houston will have a harder time buying a home. 

What does this mean for you as a seller? The slower sales climate will make it imperative that you price your home aggressively. Also because of the lower demand, expect it to take longer to sell your home. Desire the knowledge to price your home in the sweet spot then head here.

More Relocations From Costly Housing Markets

In 2018, people moved from states with burdensome taxes (like California) to Texas. Expect this trend to continue, especially in light of the expected increase in jobs in Houston this year.

What does this mean for you as a buyer? If you’re relocating to Houston, it would be advisable to buy as soon as you can to take advantage of the lower interest rates at the beginning of the year rather than waiting, since rates are on the rise.

What does this mean for you as a seller? Make marketing your home in states like California, New York, and New Jersey, where emigration is highest a part of your selling strategy.

No one can predict the future, and anyone who says they can will either be proven a genius or a fool. What you can do with this information is come up with a game plan now and be ready to adjust accordingly if the market shifts. A prepared buyer or seller is a wise one

Which trend has you worried or even intrigued? Let's talk about it in the comment section below.

Realtor.com "2019 National Housing Forecast." retrived from https://www.realtor.com/research/2019-national-housing-forecast/

Forbes. " 2019 Real Estate Forescast: What Homebuyers, Sellers, and Investors Can Expect. retrived from https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#2401469d70d9.




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