2018 into 2019 Housing Market
The past year has been a tumultuous one for the real estate market across the U.S. In the early months of 2018, home buyers were finding historically low interest rates on mortgages, though home prices tended to be at all-time highs. This put sellers in the driver’s seat for most transactions.Things have certainly shifted as the year draws to a close. Home prices are lower, mortgage rates are higher and buyers are starting to gain the upper hand. Is it likely that these trends will continue well into 2019?For most of the U.S., this is probably true. However, there are regions, such as Orlando, that may run contrary to these trends thanks to a steadier market and the increasing demand for housing that is sparked by people looking to relocate to the area.
Interest Rates Will Keep Going Higher
Mortgage rates have been climbing over the last two years, but they still haven’t reached the dangerously high territory that was common in the era of the Great Recession. In fact, the economy’s performance has been strong overall with low mortgage interest rates not really reflecting this growth. Experts on the economy are predicting that mortgage rates across the country may go as high as 5.8 percent for a 30-year, fixed rate term. That’s the kind of rate that hasn’t put in an appearance since the last housing crisis.
Millennials Will Increasingly Become Homeowners
A large portion of millennials will be turning 29 years old in 2019, which is a prime time for becoming a homeowner. Accordingly, they will be driving demand for new mortgages despite the rising rates. The coming year may prove a difficult one for first-time homebuyers to enter the marketplace, but those looking to upgrade should have an easier time. Millennials are expected to make up about 45 percent of all new mortgages in 2019, compared to 37 percent of Gen Xers and 17 percent of boomers.
Number of Home Sales to Dip Overall
With mortgage rates expected to continue to rise, fewer home sales are expected to be completed in 2019. A two-percent dip is projected by most experts in the lending industry.
Growth in Home Prices Expected to Slow
While home prices were exploding in the early months of 2018, that is definitely not the forecast for 2019. Home prices are already on a downward trajectory. Experts suggest that this trend will continue with a probable overall drop of three percent in home price appreciation.
Relocation to Spur Population Growth in Orlando
The Orlando region remains one of the most affordable in the U.S. An increasing number of people are relocating here as they discover all that the area has to offer. This growing demand helps to keep prices steady and mortgage rates competitive in the local area. If you are hoping to become a first-time home buyer in Orlando or are looking to relocate here, 2019 may be a very good year for doing so.With Orlando’s sunny, mild climate and excellent opportunities for relaxation and entertainment, it’s no surprise that more people want to live here. Couple those characteristics with a thriving local economy and a wealth of available jobs, and it’s easy to see why the prospects for the local real estate market are so positive for the coming year. While other metropolitan areas struggle with rising mortgage rates and fluctuating prices on homes, Orlando’s home market should remain steady.