Will 2019 be the year you buy a home? According to housing market experts, that will depend on several factors. What’s anticipated for potential buyers and sellers in 2019?
1. Rising Mortgage Rates
By the end of 2019, mortgage rates are expected to hit 5.5 – 5.8 percent. As a result, potential buyers who wanted to upgrade may decide to stay in their current home, keep a lower rate and make renovations.
On the flip side, those who currently rent property may renew their lease for another year and continue saving for a down payment.
2. More Inventory, Less Buyers
Although the number of homes on the market is expected to increase, the number of buyers is expected to decrease. According to the chief economist at Keller Williams, home sales will be down about 2 percent in 2019.
There may be 10 to 15 percent more homes on the market in 2019, but most will be priced $250,000 and higher. This is not great news for millennials looking for a “starter” home.
3. Rise of Townhouses & Mobile Homes
On the other hand, there is some good news for millennials. Less expensive townhouses and manufactured homes – more commonly known as mobile homes – are on the rise.
Townhouses are attached single-family homes within a community of similar style homes. By Carrier Inc. specializes in townhouses, which can be customized to your unique specifications and price range.
For those who cannot afford the price tag of a single-family home, more than 100,000 shipments for manufactured houses are expected next year. The average cost of these homes is about $70,600 without land costs.
Who’s In the Market?
The year 2020 is expected to be the peak homebuying year for millennials but in 2019, this age group will make up 45 percent of the buying market. According to the chief economist for Realtor.com this is the largest segment, compared to 17 percent of Baby Boomers and 37 percent of Generation X.
As a buyer, it’s important to take your time to find the right home that fits your lifestyle and budget. Interested in the central Connecticut area? Explore By Carrier’s active communities!