Are you thinking of buying a home this spring? If so, it pays to look ahead to the pricing and availability trends shaping the market. The factors that set market conditions range from new construction starts to existing home inventory and each year sees adjustments that can make buyers and sellers reassess their own approaches.
While predictions about how the spring 2019 market will unfold are not guaranteed, early indications are positive for potential buyers. If you’re one of the many people planning to search for your dream home in the next few months, the following trends may affect your ability to find a great deal.
Inventory gains: Slow and steady
Home prices seem set to remain reasonable, thanks to the relatively steady supply of houses on the market. Forbes contributor Aly J. Yale quoted Keller Williams Chief Economist Ruben Gonzalez, who predicted a decline in the home-price appreciation rate. This means home prices are likely to rise a low 3 percent, allowing potential buyers to consider diving into the market.
Odeta Kushi, First American senior economist, told that Yale inventory is set to rise in some regions, eliminating the need for bidding wars. Around the country, supply appears set to be only a little higher than demand, rather than easing completely. General steadiness in the market will prevent prices from spiking, and will keep general conditions relatively close to their state in 2018. If you passed on a chance to venture into the home-buying market last year, you may be able to pick up where you left off this spring.
There is a slight catch with the growth of housing inventory – many of the new houses creating a buffer in the market are at the high end of the market, and not ideal starter homes, as Realtor.com’s Danielle Hale told Yale. With that said, there is room in the market for millennial buyers. Hale added that 45 percent of mortgages will be taken out by millennials in 2019.
Confidence spreads to construction
The housing market isn’t just divided into buyers and sellers. When a market is strong, with plenty of interested buyers and favorable conditions, construction can create more supply. According to CNN Business, leaders inside the building sector are predicting strong potential for their services in 2019. Lennar’s Stuart Miller said his company sees a healthy market and good consumer confidence, while KB Home’s Jeffrey Metzger reported strong demand for new construction.
Builders stand to gain the most in areas where available home inventory remains relatively low but buyers are interested in making purchases and feeling financially strong enough to do so. The regional differences facing construction companies show that while it’s tempting to view the housing market as one nationwide entity, every area has its own mini-trends, with demand and supply differing drastically across the country.
Spring could be a time to buy
If you’re interested in buying a new home this spring, seeking out a dream house to live in for years to come, you can get the ball rolling now by applying to get pre-approved for a mortgage. With pre-approval in hand, you can move quickly and with less stress to get the house you really want. Conditions in your area may differ from the national averages, but the overall trends across the U.S. point to exciting options for buyers.
Do you have more questions? Contact the loan officer who shared this blog post or send us a message.