4 Mortgage and Homebuying Trends to Know in 2019
If you’re thinking about buying a home in 2019, it always helps to be aware of current trends in the real estate and mortgage lending markets so that you can be ahead of the curve by the time you kick off the process. To help ensure you find your perfect home at the best possible value, here are a few homebuying and mortgage trends to stay aware of in 2019.
The End of a Seller’s Market
Towards the end of last year, there was a seller’s market which saw an imbalance between the number of buyers in the market and the number of homes available for sale. That disparity is projecting to even out more in 2019. While average home prices won’t be dropping, the appreciation value of those homes is starting to slow down, resulting in a healthier and more accessible homebuying marketplace.
Stuck in the Suburbs
In 2019, demographic trends suggest that more baby boomers will be holding off on downsizing, as we see a slightly weaker market for larger homes and a financial motive to stay put. On the flip side, a recent survey of adults aged 20-36 revealed that greater numbers of Millennials are purchasing homes in the suburbs than in cities–with 38% of Millennials living in suburbs versus 37% in urban areas. This suggests that the iconic American dream of home ownership remains alive and well as older Millennials begin to raise families and look for more space.
Piquing Your Interest
Low interest rates help make home ownership accessible–with a sticking point for many prospective homebuyers being their ability to make a large down payment. To that end, more people will continue opting for loans that require reduced or minimal down payments, and financing options that are available with less than the traditional 20% down payment.
We are also expecting to see rising interest rates in the months and years ahead. While rates currently remain at historically low levels, higher rates will inevitably impact affordability. Given the low rates and current state of the marketplace in 2019, it seems unlikely that marginally higher interest rates would have a significant impact on home sales.
In 2019, new and innovative technology will continue playing an integral role in both the real estate and mortgage industries. Most of the new tech is being designed to facilitate the lending experience on behalf of consumers.
For homebuyers, this type of technology will be extremely beneficial–it would add convenience to the loan process, reduce the amount of time it takes to get an application approved and ease the burden of documentation by allowing lenders electronic access at the time of application.
Since many first-time homebuyers might have questions around this process, it’s important to choose a mortgage lender with the knowledge, skills and experience to answer them–especially as rules, regulation, tools and technology continue to evolve.
With home sales expected to increase in 2019, the future continues to look bright, with innovation and increasingly efficient service models allowing forward-thinking homebuyers to evolve and thrive.
If you would like to discuss how mortgage and homebuying trends can impact your ability to buy a home in 2019, reach out to our team of professionals. We’re ready to answer any questions you may have about the journey to homeownership.