Market DirectionMillennialsStatistics

What to Expect in 2019

2018 began with very high prices, at historical lows for interest rates, and in a seller’s market. That’s shifted in the last few months, with price growth dwindling, high interest rates, and the beginnings of a buyer’s market. Here’s what a few experts are predicting that means for 2019.

Aaron Terrazas, Zillow’s director of economic research, expects mortgage rates to continue rising. Despite the rate of growth, they’re still low for the current state of economy. Terrazas predicts a 30-year fixed rate of 5.8% in 2019, not seen since the recession in 2008.

First American senior economist Odeta Kushi and chief economist of Realtor.com Danielle Hale both predict increased demand among millennials. Many millennials will be reaching the age of homebuying and getting eager to buy at the same time that other segments of the population are hesitating in the face of high interest rates. While both believe millennials will make up a large percentage of buyers, Kushi is expecting many to be first-time buyers, while Hale thinks first-time buyers will struggle financially, so most of them will be older millennials.

More: https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#394829fb70d9

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