US property prices are set to grow 2.2% in 2019. That is according to a new forecast from real estate website, Realtor.com.
Rising mortgage rates along with prices near their peak are expected to slow the national market in 2019. Sales are likely to fall around 2%.
As a result, younger Gen-Z, millennial and other first-time homebuyers may struggle to get onto the housing ladder. Millennials will account for 45% of mortgages in 2019.
Upscale homes in high-growth markets, however, will provide more opportunities for buyers, according to the Realtor.com 2019 forecast.
Danielle Hale, chief economist for realtor.com explains why US property prices are set to grow 2.2% in 2019, “Inventory will continue to increase next year, but unless there is a major shift in the economic trajectory, we don’t expect a buyer’s market on the horizon within the next five years. To be successful, buyers should think through how they’ll adapt to higher rates and prices.”
Buyers who can stay in the market will find less competition, but will have a sense of urgency to close before house prices get even more expensive.
Although the number of homes for sale is increasing, most are in the mid-to higher-end price tier – not entry-level.
However, with inventory expected to remain limited in most markets, sellers who price competitively can still walk away with a handsome amount of profit – just not the price jumps observed in previous years.
Qualitas houses in Cape Coral, Florida, start from just $219,900 and are ideal for first-time buyers, movers, retirees and investors.