Real Estate 2019: WHAT DOES IT MEAN FOR YOU?


You’re wondering where the real estate market
is headed in 2019, and what it means for you. In this video I’ll share five key factors
affecting the market and what they mean for consumers. Stay tuned to the end of the video for your
free gift, which will help you to maintain your home’s environment and value. And for the best answers to your real estate
questions, subscribe to my channel and hit the bell to be notified when I release a new
video every Thursday. Hi, I’m Mary Anglin with United Real Estate
Los Angeles. My mission is to arm consumers with knowledge
before a real estate transaction begins. By the end of this video you’ll know the key
indicators that point toward a stable housing market in 2019 with signs of modest growth. First, home values will increase. Freddie Mac predicts housing prices will increase
by 4.3% in 2019. While the rapid price appreciation we witnessed
earlier in the decade has slowed, the combination of a strong economy, low unemployment, and
a lack of inventory in many market segments continues to push prices higher. Home price appreciation will slow down, the
days of easy price gains are coming to an end. But prices will continue to rise. And what does this mean for you? If you’re in the market to buy a home act
fast. Prices will continue to go up, so you’ll pay
more the longer you wait. If you’re a current home owner, real estate
has proven once again to be a solid investment over the long term. In fact, the equity level of home owners reached
an all time high in 2018, topping $6 trillion. Second, sales levels will stabilize. 2017 was the best year for home sales in 10
years. And 2018 was only down 1.5% from that due
mainly to a lack of inventory that was affordable. The Economist expect home sales to remain
relatively flat over the next couple of years. Freddie Mac forecasts home sales will increase
1% in 2019. And 2% in 2020. With slower price appreciation, incomes have
an opportunity to catch up. And with slower sales, inventory has the opportunity
to normalize. The medium and longterm prospects for housing
are good because demographics continue to support demand. What does it mean for you? If you’ve been scared off by reports of a
market slowdown, it’s important to keep things in perspective. A cool down can prevent a hot market from
becoming over heated. A gradual and sustainable pace of growth is
preferable for longterm economic stability. Type yes in the comments if you’ve had fears
of where the market is headed. Third, mortgage rates will rise. The Mortgage Bankers Association predicts
the Federal Reserve will raise interest rates 3 times this year, resulting in a rise of perhaps
5.5% in the mortgage rates. Now this might seem high to today’s buyers,
but it’s not out of line with historical standards. The average mortgage rate in the 1990s was
8.1%. And rates did not fall below 5% until 2009. So for buyers who can make the math work,
buying a home is still an investment worth likely making. What does it mean for you? If you’re in the market to buy a house or
refinance an existing mortgage, you may want to act quickly before the mortgage rates rise. And to qualify for the lowest rates available,
take steps to improve your credit score, pay down existing debt, and save up for a larger
down payment. The fourth indicator is that affordability
issues will persist. Higher home prices and rising mortgage rates
will make it increasingly difficult for many first time buyers to afford to buy. While the number of available home is increasing,
the majority of new inventory is focused in the mid to higher end price tier. Not entry level. This means less competition for buyers who
are able to stay in the game. What does it mean for you? Unfortunately market factors make it difficult
for many first time home buyers to afford a home. However, as move up buyers take advantage
of new high end inventory, we could see an increase in starter homes hitting the market
before long. And the fifth indicator is that millennials
will make up the largest segment of buyers. The largest cohort of millennials will be
turning 29 this year, entering peak household formation and home buying age. And contributing to the increase in first
time buyer demand. Danielle Hale, chief economist for Realtor.com
predicts that millennials are also likely to make up the largest share of home buyers
for next decade, as their housing needs adjust over time. What does it mean for you? If you’re in the market for a starter home,
prepare to compete for the best listings. And if you plan to sell a home in 2019, be
sure that you work with an agent who knows how to reach millennial buyers by utilizing
the latest online marketing techniques. Finally, start preparing today. If you plan to buy this year get pre-approved
for a mortgage. This will give you a jump start on the paperwork
and provide an advantage over other buyers in a competitive market. Create your wishlist. What’s important to you in a home? What’s really needed? And, what’s wanted? And third, carefully select an agent. The buying process can be tricky, and a good
realtor will take away the guess work and make it much easier for you. If you plan to sell this year, have an agent
perform a comparative market analysis. This not only determines the current price
but helps to determine which repairs and upgrades may be required to get top dollar
for your home. Next, prep your home for the market. Most buyers want a home they can move right
into without having to make extensive repairs and upgrades. An agent can help you determine which ones
are worth the time and expense in order to deliver maximum results. And start decluttering. Help your buyers see themselves in your home
by packing up unnecessary items, making your home appear larger, and making it easier to
stage. So now that you know what to expect in the
market this year, click on the link in the description box below for your gift. A link to access my free house care calendar,
a seasonal guide to maintaining your home. If you’re in the San Gabriel Valley or the
Inland Empire and are in need of a realtor, I’m right here in West Covina. Just give me a buzz. I look forward to connecting with you. And if you enjoyed this video and found it
helpful, please give it a thumbs up and make sure you subscribe so you don’t miss any of
my upcoming videos. And share in the comments, yes or no, if the
info you learned in this video has helped you to make a decision whether to buy or sell
this year. And I’ll see you on the next video.

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