2019 Real Estate Market Forecast Power Shifts To Buyers

Dated: 07/15/2019

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By Veronica Nunez your Real Estate expert

(951) 403-4445     veronicanunez@firstteam.com

BRE02031119

Buyer demand will decrease, because of still high prices. But inventory will increase, as sellers will realize prices are coming down. Homes will stay on the market longer, so there will be more flexibility in the price. 2019 will be a good year for buyers, who can find a decent deal if they negotiate hard.But sellers will be disappointed. If I was selling a home in 2019, I would sell it sooner than later. As interest rates rise throughout the year, sellers will get less and less for their house as the year goes on.

Buyers will likely have an easier time in most markets in 2019. They should see more options, including some beautiful new construction. Sales prices should stabilize by mid-2019. Some markets will see prices only drop by a tiny amount as new inventory is added to the market.

By late 2019, expect many homes to sell for less than the asking price and price softening overall. Home valuations also will likely start to fall by the end of the year. Buyer demand should remain about the same and even tick up a bit as some frustrated buyers come back into the market. Expect an increase in listings, too.

The economic policy that is driving the U.S. economy forward will create more job and wage growth, which will continue to drive household formation. But demand may be weakened slightly as both interest rates and home prices continue to rise.

The good news for buyers is that home price increases should be smaller than we’ve seen in recent years, perhaps even dropping slightly in a few markets that are over-priced. And there should be more inventory available of both new and existing homes to purchase. We’re going back to more of a standard market in 2019. It’s likely home sale prices will continue to stabilize across the board.

Due to huge influxes of new construction inventory, changing economic conditions in the nation, and rising interest rates, unrealistic prices will no longer be a point of conversation as buyers will have other more realistically priced options. For these reasons, 2019 should be a fantastic real estate year for buyers.

Given the rising interest rate environment, I believe we will see the rate of home appreciation, home-for-sale listings, buyer demand, and available inventory fall. We will also actually start to see average sale prices decrease as interest rates climb further.

We’ll initially see a slowdown in home sales as sellers will be reluctant to decrease their asking prices. But over time, sellers will lower their prices and home sales will return to more normal levels. This will create a reasonable environment for buyers.

Veronica Nunez

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Veronica Nunez

Veronica Nunez is a First Team Realtor in the city of Corona. She has been a Corona resident since 1997. Veronica has worked in public services for 23 years, fifteen of them for the City of Corona. Sh....

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