If your goal is to run a successful real estate business, a large part of meeting that goal requires you to be in the know about changing trends and forecasts.
To save you from having to scan every news article in the past year, we’ve compiled a list of 5 things all Realtors should know in 2019, so you can spend less time analyzing studies and contradictory information and more time selling homes!
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1. Millennials Will Continue to Lead the Market
Although home prices are getting steeper, millennials will still make up most of the homebuying market. As many millennials reach their 30s, it’s prime homebuying time for this generation. Millennials will still make up the biggest chunk of those taking out new mortgages. And older millennials will be looking to upgrade from their starter home.
Keep your eye out for these millennials who are move-up buyers. They have the money to buy the mostly above-average priced homes on the market right now.
2. Home Appreciation Will Slow
As inventory for homes remains high, this will cause home appreciation to slow down. Since the market is saturated with new homes, homeowners won’t see much appreciation and may choose to wait to sell at a time when their home is worth more.
3. First-time Homebuyers May Struggle
Although there are a growing number of homes to choose from, most of them are priced in the upper tier, making it difficult for first-time homebuyers to find the right fit and compete with other, more affluent buyers. Those who can remain in the market will most likely be looking at more expensive homes, such as the aforementioned older millennials who are looking to upgrade.
There won’t be a lot of options for starter homes, so you may see first-time homebuyers sitting out this year and waiting for more inventory in their price range to come on the market.
4. The Suburbs Are Gaining in Popularity
As home and rent prices in major metropolitan areas rise, such as San Francisco and New York City, there has been a significant shift of young people moving to the suburbs. Buyers are looking for areas outside of major cities with good public transportation, a thriving downtown and, if they’re buying an apartment or condo, lots of amenities.
You will see an uptick in millennials looking in these areas as an alternative to buying in the cities they’ve been priced out of.
5. Sellers May Need to Incentivize Buyers With More Than a Great Price
Even though it is technically still a seller’s market, home sellers will need to get creative to be competitive since inventory is on the rise. Sellers should be prepared to cut their listing price or to offer other incentives such as covering the cost of closing fees, paying for repairs, or being flexible on timelines and closing dates.
Buyers who can afford what’s on the market right now have the luxury of taking their time as they decide on the perfect home. If sellers want to speed up the process, they are going to need to offer a deal that is hard for anyone to pass up.
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